Monday, October 1, 2012

Side benefit of original CBS football digital content: It's theirs

RAIN 10/1: CBS Radio develops original NFL content tying web and mobile to radio and TV

Paul Maloney
CBS Radio has developed and launched several NFL-related original content streams to deepen fans' engagement with their brands (including radio) on football Sunday.
One benefit of this original content (as pointed out by both Inside Radio and CBS Local Digital Media president Ezra Kucharz) is that CBS isn't constrained by royalties and rules about how it can be used, as they are with copyright music. "We’ve put together a very lean but efficient studio model where we’re developing content in house that we own and have the ability to put onto multiple platforms," Kucharz told Inside Radio. "With music there is an incremental expense on a royalty basis. With content that we create and own, there’s a fixed cost and that’s it."
Football fans can try:
Tailgate Fan: A web/mobile video series showcasing fans' pregame party and food, in a different NFL city each week, hosted by comedian Nick Stevens
Sports Verdict: Two sports experts debate a football topic, and fans decide the verdict.
Pregame Playlist: Video series in which a different NFL player each week gives fans a glimpse into his digital music player.
Player Style File: Video feature covers different players' off-field lifestyle.
CBS Radio’s mobile audience is up to 10 million monthly uniques across its apps and the mobile web. CBS Radio's sports station's streams time-spent-listening is up 43% on Mondays over other weekdays so far this NFL season.
Kucharz is the recipient of the 2012 Triton Digital RAINMaker Award, which was presented at our recent RAIN Summit Dallas event. The CBS Local Digital Media studios "employ a small staff bolstered by on-air talent from the company’s radio and TV stations. They’re part of a digital strategy that leverages fast-changing technology for products that tie in with the company’s on-air and online businesses," explains Inside Radio.
Paul Maloney
"In setting (webcast royalty) rates, the (Copyright Royalty Board) looks to establish rates that reflect what a willing buyer and a willing seller pay in the marketplace. In past royalty proceedings, that willing-buyer, willing-seller price had to be estimated, as there were no real deals to use as a benchmark. And the estimates all went against webcasters. With a deal like that with Big Machine... the pro-record company outcome of the CRB proceedings may well be changed if these deals can be shown to be representative of the real value of the public performance of the sound recording."
That's industry attorney David Oxenford's take-away from recent "direct deals" between broadcasters and record label for both terrestrial and digital sound recording royalties (the latest of which involved Clear Channel and Glassnote Entertainment, covered in RAIN here).
Copyright Royalty Board judges, per the 1998 DMCA, don't set royalties considering the fairness and "mimimal disruption" of their decision (as is called for in the Copyright Act's "801(b)" standard, which is used in royalty determinations for other forms of digital radio). They are mandated to set a rate at what they think a "willing buyer" would pay and what a "willing seller" would accept. Critics point to this different and unpredictable standard as the reason Internet royalty has been saddled with sound recording royalties that, as a percentage of revenue, are many multiples of those paid by satellite and cable radio. It's also the impetus behind the recent Internet Radio Fairness Act, introduced to both chambers of Congress (in RAINhere).
Oxenford is suggesting that should deals like Clear Channel's and Entercom's (both groups have reached agreeements with Big Machine Records) start to spread to other companies, they could very well represent the "marketplace" agreements with willing buyers and willing sellers that could set "a precedent for lower royalties in future proceedings."
The next round of proceedings to set webcasting royalties starts in 2014 (to set the rates for 2016-2020).
Read Oxenford, a D.C.-based partner at Wilkinson Barker Knauer, in Broadcast Law Blog here.
Paul Maloney
Database and e-mail marketing firm Presslaff Interative Revenue has published a new white paper demonstrating the importance of collecting user ZIP codes for online media properties.
"In addition to e-mail address and permission, we believe the single most lucrative piece of data is a user's ZIP code," the paper, called "Finding Gold in ZIP Code Data," opens.
According to the paper, being able to associate a user ID with that user's ZIP code provides three unique benefits: methods to generate revenue, the ability to improve your marketing and promotional efforts, and an enhanced way to driveaudience engagement with your brand and content.
Presslaff Interactive Revenue works with more than a thousand radio stations, television stations, and newspapers in the U.S. and Canada. Download "Finding Gold in ZIP Code Data" for free here.

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