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Web radio may challenge conventional format (2/6/2002)
MUNCIE, Ind. - Web radio may never replace traditional AM/FM stations, but it is becoming more popular, says a Ball State University communications expert.

As people become increasingly comfortable with being online, more will discover the hundreds of audio channels available to them, said Dom Caristi, telecommunications professor.

Web radio is available worldwide, but only to those who invest in a computer and an Internet connection, he said.

"The variety of Web radio is really the key to its success," Caristi said. "If you are listening to the radio, you may have a couple of stations you like. On the Internet you have stations from all over the world to choose from."

Web radio was first introduced in the early 1990s. It uses constantly evolving Internet technology to download "streams," or bits, of music to a computer-friendly audience growing tired of traditional radio stations.

Listeners can click a mouse and tap into a growing array of online music, ranging from heavy metal to folk. Computers equipped with either RealPlayer or Windows Media Player can easily access the latest heart-pounding music or long-forgotten commercials.

"Corporate America sees a great potential for this," Caristi said. "Most radio stations already have an online presence. It will grow in the next few years as companies look to expand their presence."

Web radio has already survived its first major crisis. Unions representing songwriters and talent for commercials asked
for higher royalties because larger audiences were hearing their work through the Web.

Many stations shut down the audio portions of their online sites until tentative agreements could be reached.

"Songwriters and commercial performers wanted more money because they were no longer being heard in just a single market as their contracts were written," Caristi said. "Other stations found a remedy by removing commercials from online broadcasts and replacing them with public service announcements or other types of material."

The Web has about 5,000 radio sites operating with advertisers including beer companies, national retailers, fast food chains and military recruiters.

Those advertisers want to tap into an audience that include 21 million office workers who listen to Web music each month, Caristi said.

Web radio advertising could reach $3 billion by 2005, up from $44 million in 2000, due to the increase in the number of home computers using broadband hookups.

"There is potential for Web radio to reach a mass audience," he said. "However, this isn't a new market. It is a new way to reach an existing market."

By Marc Ransford, Media Relations Manager

(NOTE TO EDITORS: For more information, contact Caristi at dcaristi@bsu.edu or (765) 285-1493.)