VIRTUAL RADIO STATIONS. Virtual radio stations are digital
audio sources connected to a network (typically the Internet).
In 1999, there were over 2,000 radio stations operating on the
Internet. Virtual radio stations have a strong competitive
advantage compared to standard radio broadcasts. Radio stations
Web sites can do more than simply rebroadcast their onair
signals. They can provide photos of disc jockeys, contest
prizes, and winners, and act as current news centers for entertainment
events and weather services.
Broadcast radio stations have been offering content delivery
by both radio and Web access in anticipation of a significant
shift to Internet (virtual) radio. Internet radio offers the
ability to customize (personalize) a broadcast to groups or
individual receivers. By 2005, 41 percent of the population
will listen to personalized, on-demand audio content at least
once a week. Content providers will adopt genre-specific business
models.
Radio stations are taking aggressive steps in developing a
new breed of Web sites designed to offer fresh content and
help the media outlets connect better with their target audience.
This includes offering chat rooms, news updates and
music reviews, and other social-based services that make their
Web sites more appealing. Additionally, virtual radio stations
can use their Web sites as research tools to determine listener
preferences. The system serves up real-time information, providing
details on the music being played. Listeners then are
asked to use the Web site to vote on the song being played, thus
giving station programmers instant feedback on listener tastes.
The radio stations then talk up their Web sites during radio
broadcasting, driving more usage to the Internet service. The
Internet is having both a positive and negative impact on radio
station ratings and revenues. 159