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If traditional radio stations are going to object to the "cloud based music streaming" encroaching on their territory, then they leave themselves open to the argument that radio stations should not be allowed to put their programs "online".
Remember, "radio" as invented by Marconi is something that's transmitted through the "air", not through a cable.
You can't have your cake and eat it too.
If you can afford to call in the copyright lawyers, you can afford to put on better programing.
I think any advertiser will pay attention to how and with whom they are spending their advertising dollars. It's one thing for these streaming services to call themselves "radio" but it's another thing to convince an advertiser that they really are. I think these services will find their niche and a slice of the advertising pie but they'll do it on their individual strengths, not because they call themselves "radio". I think radio executives should be more concerned about how to grow their slice of advertising revenue rather than attempting to protect the "radio" label. I read recently that the daily spend on TV just in Sydney is something like 28 million dollars. How about thinking how you can win some of that off TV rather than obsessing over a tech startup?
Or maybe just head back to the scheduling computer and shuffle the Elton, Billy and Phil tracks around...