NEW MEDIA NETWORK SLAMS COMMERCIAL RADIO RIVALS

MEDIA RELEASE

NEW MEDIA NETWORK SLAMS COMMERCIAL RADIO RIVALS

March 18, 2005

An Australian new media company has slammed calls by Australia’s major commercial radio networks for free spectrum and a decade of dominance as “a shameless attempt at protectionism”.

Co-founder of internet media company The Podcast Network Cameron Reilly said traditional radio broadcasters were “running scared” and asking for discriminatory government handouts.

“This is about the democratisation of radio. Traditionally, radio has been the domain of large companies and now they are trying to hide behind mother’s skirt, having recognised the threat they face from new media companies. They are waking up to the realisation that new technologies such as podcasting are serious competition with the ability to undermine their market share,” Mr Reilly said.

Mr Reilly was responding to news that the heads of Australia’s major commercial radio networks had gathered in Canberra for four days of meetings with the Federal Government over the introduction of digital radio.

In return for investing $400 million in new digital technologies they are demanding five key policy directions from the Federal Government including no cost spectrum for in-band commercial radio broadcasters and no new entrants for at least 10 years.

“It is not the role of the Federal Government to protect out-dated business models. Instead it should be supporting new Australian businesses that are truly innovating to become world leaders in exploring exciting new alternatives to traditional broadcast radio,” Mr Reilly said.

“Support from the Federal Government for this initiative would be akin to regulations supporting the horse and buggy and preventing introduction of the automobile.”

Mr Reilly said traditional radio was trying to play catch-up with a move to digital technology, however podcasting was essentially the next step forward in the evolution of broadcasting.

“Consumers want greater choice and more control than even digital broadcast radio can offer. The growing trend around the world is for people to listen to their own music and tailored programming on portable audio players at their own convenience,” he said.

“Anybody with their finger on the pulse understands that the future of media is about freeing the consumer from imposed scheduling. Contrary to what the commercial radio networks have suggested, the migration to digital radio has already begun well and truly in Australia with the introduction of podcasting, and several Australians are already world leaders in this popular new medium.”

Podcasting allows both amateurs and professionals to create audio shows that internet users can download to computers and then on to their iPods or other digital audio players.

From its sudden emergence in mid 2004, podcasting has spawned at least 3500 new programs, ranging from technology-focused product reviews to sports commentary and ‘chit-chat’ shows.

Mr Reilly said The Podcast Network was the world’s first commercial podcast publishing company with its own unique stable of titles. An eclectic collection of channels is being developed ranging from business, technology and science to lifestyle, which are all managed and aggregated under the one roof.

“Most of these shows are being produced by enthusiasts who have something to say. Anyone with a PC and access to broadband internet can now record and distribute their shows for listeners to download,” Mr Reilly said.

“The Podcast Network has recognised the value of this medium and is expediting the production, distribution, adoption and monetization of downloadable audio programming. We intend to be the first company to legitimize MP3 players as a channel for advertising.”

ENDS

CAMERON REILLY

Cameron Reilly is co-founder of The Podcast Network with business partner Mick Stanic. He is one of Australia's most experienced internet and e-business consultants. During his career at Microsoft
Australia (1998-2004), he held several key positions designing the sales and delivery strategy of their e-business and internet technologies. Prior to Microsoft, Cameron was a sales manager at OzEmail (1996-98), one of Australia's leading Internet Service Providers. He designed and executed sales strategies which helped OzEmail double their consumer client base. He has also worked in video production and banking and finance.

For more information contact:

Cameron Reilly
Email: cameronreilly@gmail.com
Mob: +61 400 455334
Tel: +61 3 9687 0236

Comments

[CD]

The voice has spoken!

Let's not forget though that the Government makes a lot of money out of selling bandwidth to radio operators.

And a lot of money that is...in exchange for a right, not even a product!

How will the Government make money out of podcasting? There is already GST on mp3 players - and then?

[Cameron Reilly]

It may have made money from terrestrial radio spectrum in the past but how is it going to make money out of this new deal for "no cost spectrum"? It isn't.

The argument that a government, who has made money in bygone eras from now outdated businesses, built in an era of limited supply of spectrum, should prevent Australia's chances of becoming serious global players in the new era of digital content distribution, is flawed from any rational perspective.

The Federal Government has an obligation to let the market dictate these migrations and not, as it has so many times in the past (can anyone remember the "datacasting debacle" or Telstra's broadband fiasco???) interfere in a lameduck and un-Australian attempt to protect minority interests.

[Nicole Simon]

Another 'W' posting, Cam ;o)

As for the goverment earning money / protecting the broadcast stations: Shut down everthing for the australian airwaves and protect australien broadcasters - then we will just rule the world form, I don't know, NZ?

This is a new time. If they try to play safe with old modells, they will loose. That time is over.

And like the interview with Howard said: We need to take care of the fact that content and distribution is in one hand.

[CD]

Government might not agree to the "no cost" deal...that's a strategy to negotiate with Government.

By doing so then you get the Govt negotiators to focus on the money side and give concessions on other fronts...just like the trade unions have always done.

Now if you want to be the new Howard Hughes of the Australian airways...you might need more friends and a lot more cash...:-)

[Shane Williamson]

The worm has turned! The digital revolution is beginning! Burn your radios! ...oh, but in an enviromentally friendly way...