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News
Internet Radio Going More Mobile [UPDATED]
Sunday, June 17th, 2007 at 4:00 PM - by John Martellaro
Technology companies and investors are pursuing a new, possibly risky course: portable Internet Radio, according to the Wall Street Journal on Monday. Possibilities being explored include access via cell phones as well as dedicated devices.
Internet Radio has had some challenges. The most recent is the proposal to raise the royalty rates Internet radio stations must pay. Even while that issue is being addressed, and even though Internet Radio has not been considered a very good mobile service on small devices, several companies are pursuing that very goal.
"Some halfway solutions exist, such as music devices that allow people to stream Internet radio on speakers, or software that allows technology buffs to access Internet radio from their phones. But results can be glitchy, expensive and technically against the terms of contracts with mobile-phone service providers," Sarah McBride wrote for the WSJ. "Now, start-ups and giants are jockeying for position in mobile Internet radio, in a race that could rearrange the business model of music and broadcasting."
For example, the SanDisk Sansa Connect allows users in WiFi zones to listen to online radio stations from Yahoo Inc. Pandora announced that it is working with Sprint Nextel to make its radio service available on mobile phones. Slacker is working on a hand-helo Internet radio device.
Suddenly the portability of Internet radio could pose a new threat to both legacy radio stations and even satellite radio. Internet radio "will sweep into the car, and the traditional station is going to have to think about how they reprogram to compete," said Jonathan Jacoby, an analyst at Banc of America Securities.
Challenges, however, abound. Slacker systems require a four inch (10 cm) antenna that must be mounted on cars. Other companies like Sprint are skipping the car and focusing on traditional portable devices. How investors will see all this and how the various incarnations remains to be seen.
Apple, in contrast, believes that the best experience to date is iTunes on a desktop computer and a perfect digital download to an iPod or iPhone. Clearly, some other companies are looking for their niche. Moreover, no one knows what new features will be added to the iPhone in time. One thing is certain -- Internet radio has a strong following, 29 million users in 2007, and companies searching for a role in the music and talk delivery business arent likely to ignore such an audience.
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