8(a) Business Development
8(a) Business DevelopmentNew 8(a) Business Development Regulations have been issued.
In order to help small, disadvantaged businesses compete in the market place, the SBA created the 8(a) Business Development Program. The following article discusses what the 8(a) Business Development Program is, benefits of the program, goals and requirements, eligibility and how to apply.
What is the 8(a) Business Development Program?
Eligibility RequirementsTo qualify for the program, a small business must be owned and controlled by a socially and economically disadvantaged individual.
Under the Small Business Act, certain individuals are presumed socially disadvantaged: African-Americans, Hispanic Americans, Asian Pacific Americans, Native Americans (American Indians, Eskimos, Aleuts, or Native Hawaiians), and Subcontinent Asian Americans. An individual who is not a member of one of the groups listed can be admitted to the program if he/she shows - through a "preponderance of the evidence" - that he/she is socially disadvantaged. For instance, an individual may show social disadvantage due to race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society; or other similar causes.
In addition, a socially disadvantaged individual must show economic disadvantage by submitting a narrative and personal financial documentation about one’s income, assets, and net worth.
Generally, successful applicants must also meet the following additional requirements
The specific requirements with further explanations are in 13 CFR 124 8(a) Business Development.
What happens if I successfully meet the eligibility requirements?Firms that participate in the 8(a) BD program benefit from the business development assistance provided by the district offices of SBA located around the country. Small business development is accomplished by providing various forms of management, technical, financial and procurement assistance. The program participants are responsible for maintaining their eligibility and self-marketing their products and services to the federal government and the private sector.
Under the Small Business Act, participation is limited to nine years and after that time, neither the business nor that individual will be eligible to participate again. In other words, there is a one-time eligibility restriction.
Because the program is of a limited duration and has a one-time eligibility restriction, it is important for firms applying to the program to understand the basic eligibility and reporting requirements. Once a firm has established its eligibility, it is required to maintain that eligibility, which SBA monitors, annually.
Applying to the 8(a) ProgramAre you ready to apply?Prior to applying for the 8(a) Program, each firm is urged to take an on-line training and self-evaluation course, which is accessible via the following link: 8(a) Business Development Suitability Tool.
The first section of the on-line course explains the 8(a) Program in detail. It culminates in an eligibility self-assessment test. The test consists of a series of simple yes/no questions that evaluate the degree to which your firm meets the basic qualifications for the 8(a) Program.
If key eligibility criteria are not met, you will be directed to the SBA resource deemed most appropriate to help you at this time.
How do I apply?We recommend that you submit your application or the 8(a) Business Development Program electronically, but if you use paper, see the following guidelines.
If you would not like to submit electronically,you can contact your local SBA District office to obtain a paper application to apply to the 8(a) Program Business Development Program.
For more information or questions call the Division of Program Certification & Eligibility at (202) 205-6417.
Ready to Start Doing Business with the Government?Once approved as part of the 8(a) Business Development Program you will be provided with a lot of guidance and information on government contracting. To get prepared take a look at the following articles: Registering with the Government, Determining Size Standards, Small Businesses, and about the 8(a) Business Development Program.
Related Success Stories:8(a) Certified Business Finds Long-term Success8(a) Certified Business Receives Support from SBA Resource Partners8(a) Certified Business Receives Federal Contracts, Finds SuccessRelated Forms:8(a) Annual Update
Internet Radio Royalty Rates
BMI: Offers two levels of license depending upon your size, including an exclusive Micro-Caster License for small, budget-conscious Webcasters.
SESAC: Offers one license. If your Web site will generate fewer than 550,000 sessions in the following 12 months, and you plan on generating less than $1,200 a month in revenue, you qualify for our Affiliate SESAC license. The SESAC license accounts for $8 of either bundled package.
"Revenue" is fully defined in the short licensing applications that you will need to complete, but, conceptually, it is the money you make from your use of copyrighted music on your broadcast and through your Web site. For instance, income from commercial audio spots run on your station or income from any listener donations will count as revenue. The "litmus test" is to ask yourself: "If my station was no longer available on my Web site, would I still generate this revenue?" (Back)
Contents
[hide]
· 1 Introduction
· 2 The New Rates
· 3 The Internet Radio Equality Act
· 4 Articles
· 5 Interviews
· 6 Links
Introduction
On Mar 2 2007 the United States Copyright Royalty Board (CRB) announced new royalty rates for webcasts, effective from 2006 to 2010.pdf
National Public Radio (NPR) has filed a motion for rehearing, calling into question many of the decision's technical details which NPR and others argue will severely harm Internet radio.
The New Rates
In the old, percentage-based fee system, webcasters paid SoundExchange -- the Recording Industry Association of America-associated organization that pushed the Copyright Royalty Board to adopt the new rates -- between 6 percent and 12 percent of their revenue, depending on audience reach. The new system charges all webcasters a flat fee per song per listener;
2006 $.0008 per performance
2007 $.0011 per performance
2008 $.0014 per performance
2009 $.0018 per performance
2010 $.0019 per performance
A "performance" is defined as the streaming of one song to one listener;
The minimum fee is $500 per channel per year.
For noncommercial webcasters, the fee will be $500 per channel, for up to 159,140 ATH (aggregate tuning hours) per month.
The Internet Radio Equality Act
The Internet Radio Equality Act has been introduced April 27 2007 by Representative Jay Inslee (D-WA) and eight cosponsors, with more cosponsors on the bill expected shortly. [1]
The bill has five major provisions:
§ Nullifies the recent decision of the CRB judges
§ Changes the royalty rate-setting standard that applies to Internet radio royalty arbitrations in the future so that it is the same standard that applies to satellite radio royalty arbitrations -- the 801(b)(1) standard that balances the needs of copyright owners, copyright users, and the public (rather than "willing buyer / willing seller").
§ Instructs future CRBs that the minimum annual royalty per service may be set no higher than $500.
§ Establishes a "transitional" royalty rate, until the 2011-15 CRB hearing is held, of either .33 cents per listener hour, or 7.5% of annual revenues, as selected by the provider for that year. Those rates would be applied retroactively to January 1, 2006. (The logic behind this rate, incidentally, is an attempt to match the royalty rate that satellite radio pays for this royalty -- thus the name of the bill.)
§ Expands the Copyright Act’s Section 118 musical work license for noncommercial webcasters to enable noncomms to also perform sound recordings over Internet radio at royalty rates designed for noncommercial entities, and sets an transition royalty at 150% of the royalty amount paid by each webcaster in 2004. (Note that this amount would be a set, flat fee through the end of the decade.)
§ For future CRBs (e.g., 2011-15), adds three new reports in the CRB process: The Assistant Secretary of Commerce for Communications and Information will submit a report to the CRB judges on the industry impact in terms of competitiveness of the judges' proposed rates; at the same time, the FCC will submit a report to the CRB judges on the effects of the judges' proposed rates on localism, diversity of programming, and competitive barriers to entry; and the Corporation for Public Broadcasting will submit a report to Congress and the CRB judges on the effect of the the judges' proposed rates on their licencees.
The http://SaveNetRadio.org site is asking listeners to call their Representative and ask him/her to "cosponsor the Internet Radio Equality Act, introduced by Representative Jay Inslee." Once listeners click the "Call Your Representatives" button on the site and enter their zip code, they are given their Representative's House office phone number and a list of "talking points" to emphasize.
Articles
§ Mar 2 2007: RAIN Webcast Royalty Rate Decision Announced
§ Mar 4 2007: Wired U.S. Copyright Royalty Board Rejects Webcasters, Embraces SoundExchange
§ Mar 8 2007: BBC Royalties threaten internet radio
§ Mar 6 2007: Wired Royalty Hike Panics Webcasters
§ Mar 20 2007: ArsTechnica NPR fights back, seeks rehearing on Internet radio royalty increases
§ Mar 20 2007: Idolator The IdoLawyer Attempts To Make This Internet-Radio Royalty Matter As Sexy As Possible
§ Mar 22 2007: Consumer Affairs Feds Agree To Rethink Internet Radio Royalties
§ Apr 1 2007: David Byrne 4.1.07:Your Government Working for You
§ April 27 2007: Roy Mark Bill Could Keep Internet Radio on The Air
Interviews
§ Mar 20 2007: Royalty Week Brian Zisk interviews John Simson
STUDIO RATES
Hourly rate for three camera production onWhite cyc or black drape area
$500 per hour
Lighting/set-up charge
$200 one time fee per taping
For every fifteen minutes of studio time used after initial one hour is billed at $100.
AFTERNOON TAPING BLOCK
Five hour production block includes three cameras
White cyc or black drape stage area or chroma key Backdrop area. Roll time 1:00pm end time 5:00 pm
$1700 studio time
$200 lighting/set up
$100 tape stock
$2000 total
8-HOUR TAPING BLOCK
Eight hour production block includes three cameras,
White cyc or black drape stage area or
Backdrop area. Roll time 9am.End time 5:00pm
$2600 studio time
$200 lighting/set up
$200 tape stock
$3000 total
*Roll times are standard and may vary. Additional charge of $800 is added to the five and eight hour packages for weekends or overnight productions. Airtime charges are in addition to production charges.
All production prices are based on set up of one set. Additional charges apply for use of multiple sets. Makeup, change of clothing, etc., must be completed by start of production block in order to not affect the roll time.
POST PRODUCTION
Linear and non-linear editing facilities available.
WTDTA TV editor provided
$100 per hour (3 hour min.)
50% deposit required in order to schedule production time. Balance paid on day of production. On-location productions priced based on complexity of production.
About Radio Advertising
The advantage radio advertising offers your business stems from its unique combination of high reach, high targetability, and low cost. When combined with the database approaches of traditional direct marketers and broadcast direct-response advertising techniques that drive response and deliver new customers, radio advertising can be - and is for many of our clients - the main engine of growth and profitability for a business.
Radio Advertising Costs
Radio advertising cost is perhaps the most obvious and important of the top three characteristics of radio advertising that makes it a very attractive advertising vehicle. On both creative development and media costs, radio beats TV by a significant margin. Where the most simple and least expensive TV spot ad will easily cost well over $50,000 and take months to produce, you can have a radio spot developed for less than $1,500... in a matter of days or weeks. In terms of media costs, you'll often pay a minimum of thousands of dollars for TV media placement. However, you can air a radio spot for under $100 at agency discounted rates and you can air a full week's radio advertising test on multiple stations for as little as $2,500. With TV, you can invest hundreds of thousands of dollars before you know whether a campaign will either take flight or until enough is learned to determine that it won't work. With radio, the testing happens much faster, so it costs you less in time value of money, as well as up-front and at-risk investment. Factor in TV dubbing costs and the picture only gets better for radio advertising costs.
Radio Advertising Reach
An advertising medium must reach your target customers or it provides no benefit. Radio has a wide-scale appeal to consumers. Even with the alternatives available today, listening patterns appear to be stable, indicating that radio remains a popular consumer choice. The 13,000 radio stations (approximately 8,800 FM, 5,000 AM) broadcasting across the United States together reach over 94% of the US population over 12 years old each week, according to Arbitron's American Radio Listening Trends report. With radio, there is rarely a question of whether you'll be able to reach your target customer.
Targetability
The third characteristic of radio that solidifies its advantage to you is its targetability. The fundamental advertising axiom of reaching the right people at the right time with theright message at the right cost is more possible with radio than with TV or print, the other large-scale "push" direct response advertising mediums. As a result, your dollars spent on radio advertising are more efficient, generating a greater return on investment. With the right data, for example, your radio advertising agency can tailor your media plan so your radio ads reach moms between the ages of 34 and 45. The radio industry's grouping into formats is partially responsible for radio's ability to target your customer efficiently. Here is a summary of the formats that reach corresponding demographics2(note that further targeting is possible by sex and other variables beyond age):
Age Target
Format(s)
Teens 12-17
Primarily CHR, some Urban, Alternative
Adults 18-24
CHR, more Alternative, Urban preference
Adults 25-34
Alternative, Rock, CHR, some Urban, AC
Adults 35-44
Rock, AC primarily
Adults 45-54
Oldies, AC
Adults 55-64
Classical, New AC
Adults 65+
Adult Standards, Classical, News Talk
Age information is only the beginning of the targetability of radio. For any given format, we can know much more about the audience listening habits. Let's take one format, Alternative, and look at what we know based on the available data:
What sells on Radio? 3
Radio buyers purchase a wide variety and growing number of products, ranging from vitamins and nutritional supplements to CD's/music, and health and beauty items such as hair care, skin care, and weight loss/diet products. Other stable radio advertising categories include household cleaning products, kitchen/cookware products, financial, and travel offerings. We've also seen a growing trend toward using radio advertising to drive online traffic as well as support retail sales.
Other notable radio buyer characteristics:
Radio buyers are more likely than the average direct response buyer to have viewed one or more infomercials in the 3 months prior to their radio purchase (70% to 59%).
Radio buyers spend more per purchase than TV infomercial buyers, with a median of $59 vs. $40 per purchase and an average of $148 vs. $98.
1 Radio Today 2006
2 Radio Today 2005
3 Source: ERA Buyer Study, May 2005
Broadcaster Journal
While most of the labels have agreed to waive that requirement for broadcasters - one label has agreed to waive only the requirement that the album name be identified in text - thus still requiring that the song and artist name be provided. To me, no station is going to go to the trouble of providing that information for only the songs of one label - so effectively this sets the floor for identifying all songs played by the station and streamed on the Internet.
The agreements otherwise agree to waive the requirements that a webcaster play:
· No more than 3 songs in a row by the same artist
· Not more than 4 songs by same artist in a 3 hour period
· No more than 2 songs from same CD in a row
However, these provisions are waived only insofar as the broadcaster does not "depart materially from today's range of typical over-the-air radio programming practices," citing specifically the practices of having DJs talk between songs and stations running commercials and PSAs between songs. Presumably, if a station were to go all music, with no talk or no commercials for a long period, that would not be within the typical practices of over-the-air radio stations. These waiver agreements also cover HD-2 stations, so stations should be careful that their formatics on these stations which are being streamed do not so totally depart from normal broadcast practices in such a way as to violate these waiver provisions. (Note these waiver agreements do not cover Internet-only channels that a broadcaster may program on its website).
The waivers also do not allow the streaming of an entire CD. In fact, the most restrictive of the provisions limit a broadcaster to streaming no more than half the songs from an album or CD at any time within a 3 hour period. So the "6 album sides at 6" type of promotion may be permissible, as long as the station does not then play another song from the same CD in a proximate time period.
The agreements also provide for a waiver of a provision that many broadcasters are probably not even aware exists - a requirement under Section 112 of the Copyright Act that does not allow "ephemeral copies" of recordings to be kept for more than 6 months. An ephemeral copy is a temporary copy of a sound recording made to facilitate a transmission. For instance, a copy of songs from a CD made by a broadcaster to put the music into a station's hard drive music system would be an ephemeral copy that normally could not be retained for more than 6 months without negotiating a license with the copyright holders. These waivers eliminate that six month limitation.
These waivers are different from the agreement with SoundExchange which covers all copyright holders. The waivers cover only those labels who have signed a waiver agreement. But, as the four major labels and the association representing the major independent labels have signed, most artists played by most radio stations will be covered by these agreements.
Broadcasters who are planning to sign on to the NAB-SoundExchange agreement will have the extra benefit of these waiver agreements. Broadcasters should carefully review these agreements and take advantage of them - an advantage that may give them rights on the Internet that other webcasters do not have.
In order to help small, disadvantaged businesses compete in the market place, the SBA created the 8(a) Business Development Program. The following article discusses what the 8(a) Business Development Program is, benefits of the program, goals and requirements, eligibility and how to apply.
What is the 8(a) Business Development Program?
- The 8(a) Business Development Program is a business assistance program for small disadvantaged businesses. The 8(a) Program offers a broad scope of assistance to firms that are owned and controlled at least 51% by socially and economically disadvantaged individuals.
- The 8(a) Program is an essential instrument for helping socially and economically disadvantaged entrepreneurs gain access to the economic mainstream of American society. The programs helps thousands of aspiring entrepreneurs to gain a foothold in government contracting.
- Participation in the program is divided into two phases over nine years: a four-year developmental stage and a five-year transition stage.
- Participants can receive sole-source contracts, up to a ceiling of $4 million for goods and services and $6.5 million for manufacturing. While we help 8(a) firms build their competitive and institutional know-how, we also encourage you to participate in competitive acquisitions.
- 8(a) firms are also able to form joint ventures and teams to bid on contracts. This enhances the ability of 8(a) firms to perform larger prime contracts and overcome the effects of contract bundling, the combining of two or more contracts together into one large contract. Also, see the Mentor-Protégé Program for more information on allowing starting 8(a) companies to learn the ropes from other experienced 8(a) businesses.
- Maintain a balance between their commercial and government business.
- Limit on the total dollar value of sole-source contracts that an individual participant can receive while in the program: $100 million or five times the value of its primaryNAICS code.
- Annual reviews
- Business planning
- Systematic evaluations
Eligibility RequirementsTo qualify for the program, a small business must be owned and controlled by a socially and economically disadvantaged individual.
Under the Small Business Act, certain individuals are presumed socially disadvantaged: African-Americans, Hispanic Americans, Asian Pacific Americans, Native Americans (American Indians, Eskimos, Aleuts, or Native Hawaiians), and Subcontinent Asian Americans. An individual who is not a member of one of the groups listed can be admitted to the program if he/she shows - through a "preponderance of the evidence" - that he/she is socially disadvantaged. For instance, an individual may show social disadvantage due to race, ethnic origin, gender, physical handicap, long-term residence in an environment isolated from the mainstream of American society; or other similar causes.
In addition, a socially disadvantaged individual must show economic disadvantage by submitting a narrative and personal financial documentation about one’s income, assets, and net worth.
Generally, successful applicants must also meet the following additional requirements
- The business must be small according to the Size standards for small business concerns;
- The business must demonstrate a potential for success (generally by being in business for, at least, two years);
- The business must be unconditionally owned and controlled by
- by one or more disadvantaged individuals who
- are US citizens and who
- are of good character.;
The specific requirements with further explanations are in 13 CFR 124 8(a) Business Development.
What happens if I successfully meet the eligibility requirements?Firms that participate in the 8(a) BD program benefit from the business development assistance provided by the district offices of SBA located around the country. Small business development is accomplished by providing various forms of management, technical, financial and procurement assistance. The program participants are responsible for maintaining their eligibility and self-marketing their products and services to the federal government and the private sector.
Under the Small Business Act, participation is limited to nine years and after that time, neither the business nor that individual will be eligible to participate again. In other words, there is a one-time eligibility restriction.
Because the program is of a limited duration and has a one-time eligibility restriction, it is important for firms applying to the program to understand the basic eligibility and reporting requirements. Once a firm has established its eligibility, it is required to maintain that eligibility, which SBA monitors, annually.
Applying to the 8(a) ProgramAre you ready to apply?Prior to applying for the 8(a) Program, each firm is urged to take an on-line training and self-evaluation course, which is accessible via the following link: 8(a) Business Development Suitability Tool.
The first section of the on-line course explains the 8(a) Program in detail. It culminates in an eligibility self-assessment test. The test consists of a series of simple yes/no questions that evaluate the degree to which your firm meets the basic qualifications for the 8(a) Program.
If key eligibility criteria are not met, you will be directed to the SBA resource deemed most appropriate to help you at this time.
How do I apply?We recommend that you submit your application or the 8(a) Business Development Program electronically, but if you use paper, see the following guidelines.
If you would not like to submit electronically,you can contact your local SBA District office to obtain a paper application to apply to the 8(a) Program Business Development Program.
For more information or questions call the Division of Program Certification & Eligibility at (202) 205-6417.
Ready to Start Doing Business with the Government?Once approved as part of the 8(a) Business Development Program you will be provided with a lot of guidance and information on government contracting. To get prepared take a look at the following articles: Registering with the Government, Determining Size Standards, Small Businesses, and about the 8(a) Business Development Program.
Related Success Stories:8(a) Certified Business Finds Long-term Success8(a) Certified Business Receives Support from SBA Resource Partners8(a) Certified Business Receives Federal Contracts, Finds SuccessRelated Forms:8(a) Annual Update
Internet Radio Royalty Rates
BMI: Offers two levels of license depending upon your size, including an exclusive Micro-Caster License for small, budget-conscious Webcasters.
- BMI's Micro-Caster: If you have a broadcasting package that allows for 25 or fewer simultaneous listeners, and you plan on generating less than $500 in monthly revenue from your station via your Web site, you qualify for our Affiliate BMI Micro-Caster license. The BMI Micro-Caster license accounts for $10 of the $38 bundled package.
- BMI's Mini-Caster: If you have a broadcasting package that allows for 500 or fewer simultaneous listeners and you plan on generating less than $1,200 a month in revenue, you qualify for our Affiliate BMI Mini-Caster license. The BMI Mini-Caster license accounts for $20 of the $48 bundled package.
SESAC: Offers one license. If your Web site will generate fewer than 550,000 sessions in the following 12 months, and you plan on generating less than $1,200 a month in revenue, you qualify for our Affiliate SESAC license. The SESAC license accounts for $8 of either bundled package.
"Revenue" is fully defined in the short licensing applications that you will need to complete, but, conceptually, it is the money you make from your use of copyrighted music on your broadcast and through your Web site. For instance, income from commercial audio spots run on your station or income from any listener donations will count as revenue. The "litmus test" is to ask yourself: "If my station was no longer available on my Web site, would I still generate this revenue?" (Back)
Contents
[hide]
· 1 Introduction
· 2 The New Rates
· 3 The Internet Radio Equality Act
· 4 Articles
· 5 Interviews
· 6 Links
Introduction
On Mar 2 2007 the United States Copyright Royalty Board (CRB) announced new royalty rates for webcasts, effective from 2006 to 2010.pdf
National Public Radio (NPR) has filed a motion for rehearing, calling into question many of the decision's technical details which NPR and others argue will severely harm Internet radio.
The New Rates
In the old, percentage-based fee system, webcasters paid SoundExchange -- the Recording Industry Association of America-associated organization that pushed the Copyright Royalty Board to adopt the new rates -- between 6 percent and 12 percent of their revenue, depending on audience reach. The new system charges all webcasters a flat fee per song per listener;
2006 $.0008 per performance
2007 $.0011 per performance
2008 $.0014 per performance
2009 $.0018 per performance
2010 $.0019 per performance
A "performance" is defined as the streaming of one song to one listener;
The minimum fee is $500 per channel per year.
For noncommercial webcasters, the fee will be $500 per channel, for up to 159,140 ATH (aggregate tuning hours) per month.
The Internet Radio Equality Act
The Internet Radio Equality Act has been introduced April 27 2007 by Representative Jay Inslee (D-WA) and eight cosponsors, with more cosponsors on the bill expected shortly. [1]
The bill has five major provisions:
§ Nullifies the recent decision of the CRB judges
§ Changes the royalty rate-setting standard that applies to Internet radio royalty arbitrations in the future so that it is the same standard that applies to satellite radio royalty arbitrations -- the 801(b)(1) standard that balances the needs of copyright owners, copyright users, and the public (rather than "willing buyer / willing seller").
§ Instructs future CRBs that the minimum annual royalty per service may be set no higher than $500.
§ Establishes a "transitional" royalty rate, until the 2011-15 CRB hearing is held, of either .33 cents per listener hour, or 7.5% of annual revenues, as selected by the provider for that year. Those rates would be applied retroactively to January 1, 2006. (The logic behind this rate, incidentally, is an attempt to match the royalty rate that satellite radio pays for this royalty -- thus the name of the bill.)
§ Expands the Copyright Act’s Section 118 musical work license for noncommercial webcasters to enable noncomms to also perform sound recordings over Internet radio at royalty rates designed for noncommercial entities, and sets an transition royalty at 150% of the royalty amount paid by each webcaster in 2004. (Note that this amount would be a set, flat fee through the end of the decade.)
§ For future CRBs (e.g., 2011-15), adds three new reports in the CRB process: The Assistant Secretary of Commerce for Communications and Information will submit a report to the CRB judges on the industry impact in terms of competitiveness of the judges' proposed rates; at the same time, the FCC will submit a report to the CRB judges on the effects of the judges' proposed rates on localism, diversity of programming, and competitive barriers to entry; and the Corporation for Public Broadcasting will submit a report to Congress and the CRB judges on the effect of the the judges' proposed rates on their licencees.
The http://SaveNetRadio.org site is asking listeners to call their Representative and ask him/her to "cosponsor the Internet Radio Equality Act, introduced by Representative Jay Inslee." Once listeners click the "Call Your Representatives" button on the site and enter their zip code, they are given their Representative's House office phone number and a list of "talking points" to emphasize.
Articles
§ Mar 2 2007: RAIN Webcast Royalty Rate Decision Announced
§ Mar 4 2007: Wired U.S. Copyright Royalty Board Rejects Webcasters, Embraces SoundExchange
§ Mar 8 2007: BBC Royalties threaten internet radio
§ Mar 6 2007: Wired Royalty Hike Panics Webcasters
§ Mar 20 2007: ArsTechnica NPR fights back, seeks rehearing on Internet radio royalty increases
§ Mar 20 2007: Idolator The IdoLawyer Attempts To Make This Internet-Radio Royalty Matter As Sexy As Possible
§ Mar 22 2007: Consumer Affairs Feds Agree To Rethink Internet Radio Royalties
§ Apr 1 2007: David Byrne 4.1.07:Your Government Working for You
§ April 27 2007: Roy Mark Bill Could Keep Internet Radio on The Air
Interviews
§ Mar 20 2007: Royalty Week Brian Zisk interviews John Simson
STUDIO RATES
Hourly rate for three camera production onWhite cyc or black drape area
$500 per hour
Lighting/set-up charge
$200 one time fee per taping
For every fifteen minutes of studio time used after initial one hour is billed at $100.
AFTERNOON TAPING BLOCK
Five hour production block includes three cameras
White cyc or black drape stage area or chroma key Backdrop area. Roll time 1:00pm end time 5:00 pm
$1700 studio time
$200 lighting/set up
$100 tape stock
$2000 total
8-HOUR TAPING BLOCK
Eight hour production block includes three cameras,
White cyc or black drape stage area or
Backdrop area. Roll time 9am.End time 5:00pm
$2600 studio time
$200 lighting/set up
$200 tape stock
$3000 total
*Roll times are standard and may vary. Additional charge of $800 is added to the five and eight hour packages for weekends or overnight productions. Airtime charges are in addition to production charges.
All production prices are based on set up of one set. Additional charges apply for use of multiple sets. Makeup, change of clothing, etc., must be completed by start of production block in order to not affect the roll time.
POST PRODUCTION
Linear and non-linear editing facilities available.
WTDTA TV editor provided
$100 per hour (3 hour min.)
50% deposit required in order to schedule production time. Balance paid on day of production. On-location productions priced based on complexity of production.
About Radio Advertising
The advantage radio advertising offers your business stems from its unique combination of high reach, high targetability, and low cost. When combined with the database approaches of traditional direct marketers and broadcast direct-response advertising techniques that drive response and deliver new customers, radio advertising can be - and is for many of our clients - the main engine of growth and profitability for a business.
Radio Advertising Costs
Radio advertising cost is perhaps the most obvious and important of the top three characteristics of radio advertising that makes it a very attractive advertising vehicle. On both creative development and media costs, radio beats TV by a significant margin. Where the most simple and least expensive TV spot ad will easily cost well over $50,000 and take months to produce, you can have a radio spot developed for less than $1,500... in a matter of days or weeks. In terms of media costs, you'll often pay a minimum of thousands of dollars for TV media placement. However, you can air a radio spot for under $100 at agency discounted rates and you can air a full week's radio advertising test on multiple stations for as little as $2,500. With TV, you can invest hundreds of thousands of dollars before you know whether a campaign will either take flight or until enough is learned to determine that it won't work. With radio, the testing happens much faster, so it costs you less in time value of money, as well as up-front and at-risk investment. Factor in TV dubbing costs and the picture only gets better for radio advertising costs.
Radio Advertising Reach
An advertising medium must reach your target customers or it provides no benefit. Radio has a wide-scale appeal to consumers. Even with the alternatives available today, listening patterns appear to be stable, indicating that radio remains a popular consumer choice. The 13,000 radio stations (approximately 8,800 FM, 5,000 AM) broadcasting across the United States together reach over 94% of the US population over 12 years old each week, according to Arbitron's American Radio Listening Trends report. With radio, there is rarely a question of whether you'll be able to reach your target customer.
Targetability
The third characteristic of radio that solidifies its advantage to you is its targetability. The fundamental advertising axiom of reaching the right people at the right time with theright message at the right cost is more possible with radio than with TV or print, the other large-scale "push" direct response advertising mediums. As a result, your dollars spent on radio advertising are more efficient, generating a greater return on investment. With the right data, for example, your radio advertising agency can tailor your media plan so your radio ads reach moms between the ages of 34 and 45. The radio industry's grouping into formats is partially responsible for radio's ability to target your customer efficiently. Here is a summary of the formats that reach corresponding demographics2(note that further targeting is possible by sex and other variables beyond age):
Age Target
Format(s)
Teens 12-17
Primarily CHR, some Urban, Alternative
Adults 18-24
CHR, more Alternative, Urban preference
Adults 25-34
Alternative, Rock, CHR, some Urban, AC
Adults 35-44
Rock, AC primarily
Adults 45-54
Oldies, AC
Adults 55-64
Classical, New AC
Adults 65+
Adult Standards, Classical, News Talk
Age information is only the beginning of the targetability of radio. For any given format, we can know much more about the audience listening habits. Let's take one format, Alternative, and look at what we know based on the available data:
- 63% male, 37% female
- Over 83% are less than 44 years old
- Adults 25-34 account for almost 28% of the audience
- Listening location: 38% car, 31% home 28% work
- Geographic skew toward New England , Mountain and Pacific regions
- 18% more likely to have children in the home (49% of listeners)
- 36.5% earn more than $75k/year
- More likely than any other format to use online banking
- #1 format in movie attendance
- High fast food restaurant usage (31% have eaten at a fast food restaurant 5+ times within last 30 days)
What sells on Radio? 3
Radio buyers purchase a wide variety and growing number of products, ranging from vitamins and nutritional supplements to CD's/music, and health and beauty items such as hair care, skin care, and weight loss/diet products. Other stable radio advertising categories include household cleaning products, kitchen/cookware products, financial, and travel offerings. We've also seen a growing trend toward using radio advertising to drive online traffic as well as support retail sales.
Other notable radio buyer characteristics:
Radio buyers are more likely than the average direct response buyer to have viewed one or more infomercials in the 3 months prior to their radio purchase (70% to 59%).
Radio buyers spend more per purchase than TV infomercial buyers, with a median of $59 vs. $40 per purchase and an average of $148 vs. $98.
1 Radio Today 2006
2 Radio Today 2005
3 Source: ERA Buyer Study, May 2005
Broadcaster Journal
While most of the labels have agreed to waive that requirement for broadcasters - one label has agreed to waive only the requirement that the album name be identified in text - thus still requiring that the song and artist name be provided. To me, no station is going to go to the trouble of providing that information for only the songs of one label - so effectively this sets the floor for identifying all songs played by the station and streamed on the Internet.
The agreements otherwise agree to waive the requirements that a webcaster play:
· No more than 3 songs in a row by the same artist
· Not more than 4 songs by same artist in a 3 hour period
· No more than 2 songs from same CD in a row
However, these provisions are waived only insofar as the broadcaster does not "depart materially from today's range of typical over-the-air radio programming practices," citing specifically the practices of having DJs talk between songs and stations running commercials and PSAs between songs. Presumably, if a station were to go all music, with no talk or no commercials for a long period, that would not be within the typical practices of over-the-air radio stations. These waiver agreements also cover HD-2 stations, so stations should be careful that their formatics on these stations which are being streamed do not so totally depart from normal broadcast practices in such a way as to violate these waiver provisions. (Note these waiver agreements do not cover Internet-only channels that a broadcaster may program on its website).
The waivers also do not allow the streaming of an entire CD. In fact, the most restrictive of the provisions limit a broadcaster to streaming no more than half the songs from an album or CD at any time within a 3 hour period. So the "6 album sides at 6" type of promotion may be permissible, as long as the station does not then play another song from the same CD in a proximate time period.
The agreements also provide for a waiver of a provision that many broadcasters are probably not even aware exists - a requirement under Section 112 of the Copyright Act that does not allow "ephemeral copies" of recordings to be kept for more than 6 months. An ephemeral copy is a temporary copy of a sound recording made to facilitate a transmission. For instance, a copy of songs from a CD made by a broadcaster to put the music into a station's hard drive music system would be an ephemeral copy that normally could not be retained for more than 6 months without negotiating a license with the copyright holders. These waivers eliminate that six month limitation.
These waivers are different from the agreement with SoundExchange which covers all copyright holders. The waivers cover only those labels who have signed a waiver agreement. But, as the four major labels and the association representing the major independent labels have signed, most artists played by most radio stations will be covered by these agreements.
Broadcasters who are planning to sign on to the NAB-SoundExchange agreement will have the extra benefit of these waiver agreements. Broadcasters should carefully review these agreements and take advantage of them - an advantage that may give them rights on the Internet that other webcasters do not have.