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Radio's Third Wave

D

DavidKaye

Okay, the first wave (after the experiments and all that) was lavish live network radio shows featuring drama, comedy, variety shows with live orchestras, etc.

Then when everybody wrote off radio because those kinds of shows had moved to TV, there was suddenly a second wave, the DJ. Radio had a resurgence of relevance to listeners.

Listeners decided that they'd rather hear continuous music than DJs, so automation came on the scene and put radio in direct competition with XM, Sirius, DMX, Much Music, Pandora, etc.

I think the third wave will be background music for retail. The way the performance licensing has been since the Sonny Bono law, the only options for small businesses that want to have music are these: They can subscribe to a service such as Muzak, DMX, etc., play their own music but then take out licenses with ASCAP and BMI and maybe SESAC.

Or they can play the radio (provided that the square footage of the establishment isn't more than X number of square feet, etc.)

Thus, KOIT, KDFC, and KOSF 103.7 appear to be the stations of choice for small retailers and restaurants. At this point KOIT has it hands above everyone else. It's hard to visit any retailer with music that doesn't employ KOIT. And guess what? KOIT is consistently the #1 music station in town.

So, maybe in the midst of all the hand-wringing over the fate of radio, we're seeing its third wave right before us but we're not even realizing it. Radio's third wave is as retail background music.

--dk
 
I remember that they played KOIT in the Coit Tower elevator, but that's kind of obvious. You may be right about small local (mom & pop) retailers, but I don't usually hear KOIT or any other local station in major retailers. They do tend to play Light Rock, but usually closed-circuit, from one of those services like Muzak.

In fact, the music in my local Walgreens tends to be light classic hits that aren't heard on local (research driven) stations. I've actually gone home from Walgreens or Lowe's to download some great old song I heard in the store, but hadn't heard for decades.

Some stores have their own "networks" with closed circuit music interspersed by short "commercials" for the special of the day, or whatever. But I'm not hearing too much KOIT in those places.
 
DavidKaye said:
And guess what? KOIT is consistently the #1 music station in town.

--dk
Click to expand...

Other than the December and Holiday books, which are always blown up by Christmas music, KOIT is rarely the #1 music station in town anymore. Looking at September, October, November and January, all of the following stations have topped KOIT in one or more months:

KYLD (Twice ahead of KOIT and once tied)
KMVQ (Twice ahead of KOIT and once tied)
KMEL (Once ahead of KOIT and once tied)

So it would seem that, other than during Christmas music, KOIT has lost the crown as the #1 music station in town.
 
recto101 said:
I've been around the small businesses in Fairfield and Vacaville and they tend to blair out music from KUIC-FM.
Click to expand...

Fine, but the point is that they're not using DMX, Muzak, XM/Sirius or any other paid background music service, nor are they using their own MP3 player and paying the requisite ASCAP and BMI royalties. They're playing the RADIO and letting the radio station pay the license fees under the Sonny Bono Act.
 
DavidKaye said:
recto101 said:
I've been around the small businesses in Fairfield and Vacaville and they tend to blair out music from KUIC-FM.
Click to expand...

Fine, but the point is that they're not using DMX, Muzak, XM/Sirius or any other paid background music service, nor are they using their own MP3 player and paying the requisite ASCAP and BMI royalties. They're playing the RADIO and letting the radio station pay the license fees under the Sonny Bono Act.
Click to expand...

OK - educate us, David K. I'm not aware of the "Sony Bono Act" - to most of us, he's Cher's former partner, the former Mayor of Palm Springs, and the guy who (sadly ) skiied himself into a tree.
 
Lkeller said:
OK - educate us, David K. I'm not aware of the "Sony Bono Act" - to most of us, he's Cher's former partner, the former Mayor of Palm Springs, and the guy who (sadly ) skiied himself into a tree.
Click to expand...

Anybody who follows radio should know about the Sonny Bono act. It is the major copyright changing act of this century. While it was intended more to extend copyright protections in number of years, it did a lot more in defining what kinds of public performances are allowed.

This is an extension and codification of the "hot dog stand" exemption where the operator of a hot dog stand challenged ASCAP fees under the notion that he played the radio at his grill solely for his own amusement, not for the entertainment of his customers. He won. But that was a nebulous ruling, so it was codified in the Sonny Bono act.

From the ASCAP website:

"An amendment to the Copyright Act, designed to clarify and expand the scope of the exemption for certain performances of music in food service, drinking and retail establishments by means of radio and television transmissions, became effective on January 26, 1999. (Public Law No. 105-298, which amended 17 U.S.C. 110(5).)

"The amendment law applies only to performances by means of radio-over-speakers or televisions, only if no direct charge is made to see or hear the performances, only if the performances are not further transmitted beyond the establishment where they are received, and only if the original transmission is licensed by the copyright owners -- that is, the radio or television station, cable system or satellite carrier is licensed by the copyright owners or their performing rights organizations.

"The scope of the exemption in the old law had been unclear, and led to much litigation. The new law contains objective standards which will enable both music users and copyright owners to determine whether particular radio-over-speaker and television performances are exempt from copyright liability. Two types of music users are exempt, under different standards: a food service or drinking establishment (defined as "a restaurant, inn, bar, tavern, or any other similar place of business in which the public or patrons assemble for the primary purpose of being served food or drink, in which the majority of the gross square feet of space that is nonresidential is used for that purpose, and in which nondramatic musical works are performed publicly") and an other establishment (defined as "a store, shop, or any similar place of business open to the general public for the primary purpose of selling goods or services in which the majority of the gross square feet of space that is nonresidential is used for that purpose, and in which nondramatic musical works are performed publicly").

"A food service or drinking establishment is eligible for the exemption if it (1) has less than 3750 gross square feet of space (in measuring the space, the amount of space used for customer parking only is always excludable); or (2) has 3750 gross square feet of space or more and (a) uses no more than 6 loudspeakers of which not more than 4 loudspeakers are located in any 1 room or adjoining outdoor space; and (b) if television sets are used, there are no more than 4 televisions, of which not more than 1 is located in any 1 room and none has a diagonal screen size greater than 55 inches.

"An other establishment is eligible for the exemption if it (1) has less than 2000 gross square feet of space; or (2) has 2000 or more gross square feet of space and satisfies the same loudspeaker and television set requirements as for food service or drinking establishments.

"The new law should greatly reduce disputes as to whether particular radio-over-speaker and television performances are entitled to the exemption. And, of course, the law continues to require that public performances of copyrighted music by other means such as live music, records, cassette tapes, CD’s background music services, video tapes or laser discs require permission obtained either from the copyright owners or from their performing rights licensing organizations."
 
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