Internet radio (also known as web radio, net radio, streaming radio and e-radio) is an audio broadcasting service transmitted via the Internet. Broadcasting on the Internet is usually referred to as webcasting since it is not transmitted broadly through wireless means. Internet radio involves a streaming medium that presents listeners with a continuous "stream" of audio over which they have no control, much like traditional broadcast media; in this respect, it is distinct from "on-demand" file serving. Internet radio is also distinct from podcasting, which involves downloading rather than streaming. Many Internet radio "stations" are associated with a corresponding traditional (or "terrestrial") radio station or radio network. Internet-only radio stations are independent of such associations.

Internet radio services are usually accessible from anywhere in the world—for example, one could listen to an Australian station from Europe or America. Some major networks like Clear Channel in the US and Chrysalis in the UK restrict listening to in country because of music licensing and advertising concerns.^{citation needed} Internet radio remains popular among expatriates and listeners with interests that are often not adequately served by local radio stations (such as progressive rock, ambient music, folk music, classical music, and stand-up comedy). Internet radio services offer news, sports, talk, and various genres of music—everything that is available on traditional radio stations.

Internet radio technology

Streaming

The most common way to distribute Internet radio is via streaming technology using a lossy audio codec. Popular streaming audio formats include MP3, Ogg Vorbis, Windows Media Audio, RealAudio and HE-AAC (sometimes called aacPlus). The bits are "streamed" (transported) over the network in TCP or UDP packets, then reassembled and played within seconds. (The delay is referred to as lag time.)

History

Internet radio was pioneered by Carl Malamud. In 1993, Malamud launched "Internet Talk Radio" which was the "first computer-radio talk show, each week interviewing a computer expert."^[1] However, as late as 1995, this service was not available via multicast streaming; it was distributed "as audio files that computer users fetch one by one."^[2]

A November 1994 Rolling Stones concert was the "first cyberspace multicast concert." Mick Jagger opened the concert by saying, "I wanna say a special welcome to everyone that's, uh, climbed into the Internet tonight and, uh, has got into the M-bone. And I hope it doesn't all collapse."^[2]

On November 7, 1994, WXYC (89.3 FM Chapel Hill, NC USA) became the first traditional radio station to announce broadcasting on the Internet. WXYC used an FM radio connected to a system at SunSite, later known as Ibiblio, running Cornell's CU-SeeMe software. WXYC had begun test broadcasts and bandwidth testing as early as August, 1994.^[3] WREK (91.1 FM, Atlanta, GA USA) started streaming on the same day using their own custom software called CyberRadio1. However, unlike WXYC, this was WREK's beta launch and the stream was not advertised until a later date.^[4]

Some of the first Internet-only commercial radio stations emerged in 1995. NetRadio "was one of the Internet's original Webcasters," eventually "streaming more than 100 channels including both music and spoken material." Nonetheless, NetRadio Corporation ceased operations in 2001.^[5]

In 2002, the Copyright Arbitration Royalty Panel (CARP) system was initiated by the United States Congress in order to oversee decisions regarding royalty rates and terms, particularly in regard to digital distribution of audio. Many webcasters believed the 2002 proposed royalty structure to be overly burdensome and intended to disadvantage independent Internet-only stations.^[6] CARP was later phased out in favor of the Distribution Reform Act of 2004.^[7]

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On May 1, 2007, the United States Copyright Royalty Board approved a rate increase in the royalties payable to performers of recorded works broadcast on the internet. This was the result of a two year proceeding, with dozens of witnesses and hundreds of documents from over twenty different parties, including large and small webcasters, NPR, college stations, and SoundExchange. The CRB was privy to private financial records and business models of the webcasters, and after reviewing the evidence and testimony, issued their decision on May 1, 2007 (which is currently under appeal). If enforced, this decision will undermine the business models of many Internet radio stations, which had previously relied on the rate of $0.000768 per song that had been unchanged from 1998-2005.^[8] These rules were scheduled to go into effect on May 1, 2007, with the first due date being July 15, 2007, and apply retroactively to January 1, 2006.

According to a report by Club Net Radio released in March 2007^{dead links}, under the new rates, annual fees for all station owners are projected to reach $2.3 billion by 2008. This figure is more than four times that for traditional radio broadcasters who, due to terms set forth in the 1998 Digital Millennium Copyright Act, are exempt from the additional royalties imposed on digital broadcasting outlets, which compensate the performers and copyright owners of recorded works. Both traditional radio and Internet/digital radio broadcasters are responsible for royalties collected by performance rights organizations (ASCAP, BMI, SESAC) on behalf of the composers of recorded works.

Due to these rate increases, it has been suggested that some U.S.-based Internet broadcasts should be moved to foreign jurisdictions where US royalties do not apply. "For example, Mercora, a service that allows individuals to launch their own webcasts, has established a Canadian site that they believe falls outside U.S. regulatory and royalty rules."^[9][10]

On 26 April 2007, the Internet Radio Equality Act (HR 2060) was proposed to reverse the CRB's decision.^[11] This bill was introduced in the U.S. House of Representatives by Congressmen Jay Inslee (D-WA) and Donald Manzullo (R-IL). Its Senate counterpart was introduced on 10 May 2007 by Senators Ron Wyden (D-Ore.) and Sam Brownback (R-Kansas). As of June 25 the legislation has over 100 Congressional co-sponsors.

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Day of Silence

US Internet broadcasters organized a nationwide coalition to oppose the rate hike and in support of the Internet Radio Equality Act. On June 26, many of them participated in a "Day of Silence" — either shutting off their audio streams entirely, or replacing their streams with static, ocean sounds or other ambience, interspersed with brief public service announcements — to focus attention on the consequences of the impending rate hike.

Rhapsody, SomaFM, Live365, MTV, Pandora, RauteMusik.FM, SHOUTcast, and Digitally Imported were among the participants in the Day of Silence. Last.FM and Slacker did not participate, saying that they did not want to punish their listeners for the station's problems.^[12] Supporters of the increase in royalty rates, however, point to the fact that CBS recently purchased Last.FM for 280 million dollars,^[13] and if internet radio is to build businesses off of the product of recordings, the performers and owners of those recordings should receive fair compensation. They also point to the fact that the rates were flat from 1998 through 2005 (see above), without even being increased to reflect cost-of-living increases.

Recent SoundExchange Developments

SoundExchange recently came to an agreement with certain large webcasters regarding the minimum fees that were modified by the recent determination of the Copyright Royalty Board on May 1, 2007. While the CRB decision imposed a $500 per station or channel minimum fee for all webcasters, certain webcasters represented through DiMA negotiated a $50,000 "cap" on those fees with SoundExchange.^[14]

SoundExchange also recently offered alternative rates and terms to certain eligible small webcasters, that allows them to calculate their royalties as a percentage of their revenue or expenses, instead of at a per performance rate.^[15]

An April 2008 survey showed that, in the US, more than one in seven persons aged 25-54 years old listen to online radio each week.^[16] In 2008, 13 percent of the American population listened to the radio online, compared with 11 percent in 2004.^[16]

See also

Comparison of streaming media systems Community radio Electronic commerce Internet Radio Audience Measurement Internet radio device Internet television Internet stations, list

Radio music ripping Streaming media streaming media systems, list Streamium for a history of Philips' Internet radio capable CE-devices TLH

Internet portal Radio portal

References

Bibliography