Broadcasters Stepping Up for Buy From FM Feature

[Adam Krebs]

<div class='os_post_top_link'><a href='http://www.radioink.com/HeadlineEntry.asp?hid=143388&pt=todaysnews' target='_blank'>http://www.radioink.com/HeadlineEnt...8&pt=todaysnews</a><br /><br /></div><p>"<em>More than 450 radio stations belonging to Clear Channel, CBS Radio, Beasley, Bonneville, Citadel, Cox Radio, Emmis, Entercom, and Greater Media are now tagging their songs with RDS technology for Microsoft's Zune portable media player, and more stations will be coming on board soon. The 'Buy From FM' song tag is an encrypted digital code that identifies a specific song. The code is embedded in an analog FM broadcast, and when a listener 'tags' a song, it can be purchased and downloaded to a Zune immediately (if the user is in a WiFi hotspot) or queued for later purchase. The technology isn't Zune-specific, and other consumer electronics manufacturers may decide to offer the feature as well. 'Radio's decision to push the digital envelope doesn't mean that our analog broadcasts need to be left behind,' said Clear Channel Radio President/CEO John Hogan. 'Clear Channel Radio will have 450 stations live with RDS song tagging at launch. And we applaud Microsoft's leadership and shared commitment to making cutting-edge entertainment experiences available to the masses.'</em> "</p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/zt/auto/1221162157.usr495.jpg" /></p><p>It's always nice to see broadcasters actually using their own standards, and even nicer when it benefits me, the consumer. Such is the case with this new push to increased RDS tagging on radio stations, especially now that the data is useful for more than just song identification on the go. As features on every Zune since day one, the wifi and radio have up to this point been only minimally useful by themselves, but with the 3.0 update it looks like Microsoft is finally integrating the two in a scenario that will help me discover music easier, and&nbsp;ultimately want to listen to the radio more.</p><p>But, as Pocket PC Thoughts' Paul Martin pointed out, many stations still do not have RDS for their signal, and a DJ wishing to play&nbsp;older or more esoteric material will probably not have the correct tags on the song. If you think managing <em>your</em> music library is difficult, I can only&nbsp;imagine what kind of effort it would take to tag 2-3,000 songs correctly. RDS tagging isn't Zune-specific, and this initiative will be useful in other applications such as in-car stereos and home theater setups, and will provide a leg-up against the iTunes/HD-Radio <a href="http://www.hdradio.com/iTunes_Tagging/" target="_blank">collaboration</a>. I can't wait to get my hands on the 3.0 firmware come September 16!</p>

[inteller]

well, if broadcasters are on board with this then obviously Microsoft is phoning back home to them with which stations are generating the most buy from fm sales.

[Adam Krebs]

well, if broadcasters are on board with this then obviously Microsoft is phoning back home to them with which stations are generating the most buy from fm sales.

That's a good point, albeit a little cynical. I wouldn't put it past Microsoft or the broadcasting companies to pull a stunt like this.

But as you've stated numerous times, Zune ownership is at this point very low, and an even lower number are Zune Pass subscribers. I'd imagine the people who would use this feature the most are urban commuters, the type who listen to a media player for radio instead of their car stereo, and who are more likely to be around a hotspot where they can pick up the tracks on-the-go instead of waiting to get home. As a result, Buy From FM is probably a poor metric for the number of people actually listening to a station.

[inteller]

No, not a metric of listeners. Just a metric of which station for a given market converts played music into purchases. I think if Microsoft shows stations the purchase conversion info, it will cause them to put more emphasis on RDS for other stations under their ownership. Stations get nothing out of it really other than incentive to play music that people are more likely to listen to and then buy.

If I'm station KXYZ and Microsoft tells me that I'm having a lot of people buy song X that I play, then I am going to play more of songs that are like song X, which means more people are going to listen to my radio for other songs like song X. it is indirect marketing, but I think it will benefit stations to know this info.

[Phillip Dyson]

I suspect that the Music Industry will also get wind of these metrics. If it proves to be a true revenue channel for them then it could change the way they look at free broadcast models. e.g. Radio, or Pandora

[inteller]

well, XM already does something similiar with Napster when you use the XMonlineradio to listen to your subscription. Even though that is a paid service, you'd have thought the industry would have figured it out already that free listening models can work.