| Every day at 2:00 p.m., Richard
Kaufman throws on one of his 100 Hawaiian shirts, steps back in time 40
years, and becomes Ricky the K of the Solid Gold Time Machine Radio Network
Inc.
“Have you ever noticed that Hawaiian
shirts are never exactly in style, but they are never really out of style?
They’re always out in the periphery of fashion,” said Kaufman, founder,
DJ, “chief cook and bottle washer” of the online radio destination www.60sradio.com.
Kaufman has been running his Garland-based
Internet radio business for the last year on subscription fees paid
by members. Thousands of subscribers all over the United States and the rest of the world paid an annual fee of between $90 and
$150 to listen to Ricky the K’s brand of ’60s radio programming.
He considers his Solid Gold Time
Machine Radio Network to be one of a kind — real oldies radio directed
toward anyone who loves the ’60s.
Most radio markets only have one
oldies radio station, he explained. “And most of those stations are owned
by CBS/Infinity (Broadcasting Corp.) … and what they’re doing is cheating.
They’re removing the older stuff and trying to extend the top end well
into the ’70s,” Kaufman said. Also, most stations play the same 800 songs
over and over again, 20 percent of which are from 1972 to 1978.
“We are providing a service that
does not exist anymore. Where else are these people going to be hearing
their pre-Beatles music?” he asked. “And I don’t repeat a song in 12 weeks.”
Kaufman spices up his programs with
original commercials from the Turbulent ’60s to drum up some nostalgia.
He records six, 30-minute segments five days a week and stores them on
the Web site. Each show is stored on the site for seven days so listeners
can tune in whenever it’s convenient for them.
Ricky the K’s listener base has increased
in recent months, topping out in “the thousands.” Of course, at any one
time, the number of listeners could vary dramatically. Once Internet is
commonplace in cars, Kaufman expects his program’s market penetration to
increase.
“If we pulled 1 percent in each of
the top (radio) markets, that would be $15 million (a year),” he said.
Compared to traditional radio, which
can bring in hundreds of thousands to millions of listeners, Internet radio
has had a troubling time attracting listeners.
“It’s a huge uphill battle. Anyone
can go on the Internet and provide some kind of product and have 25 listeners
at any given time,” said Don Halyburton, senior vice president and general
manager of Susquehanna Radio Corp., which owns and operates four radio
stations in Dallas — KPLX-FM (99.5), KTCK-AM (1310), KLIF- AM (570) and
KKMR- FM (93.3). All four of Susquehanna’s radio stations in Dallas broadcast
their live content over the Internet.
“It’s wonderful for creativity, but
it’s pretty hard to build an audience,” he said. Despite its heavy promotion
of its Internet broadcasts, only 10 percent to 20 percent of KKMR’s 300,000
weekly audience members are using the Internet to listen, he said. “That’s
a fairly small number, and advertisers have expectations for a very high
delivery of bodies.”
KKMR, or Merge (www.merge933
.net), sells Internet ad spots that
have accompanying visuals, but has had only mild success with it, said
Halyburton.
For the most part, online listeners
are early adopters of technology or need the Internet to get radio reception,
he said.
“Advertising has to be sold on an
aggregate basis, no single Internet radio station has enough listeners
to warrant an advertiser spending the amount of time it takes to buy,”
said Kurt Hanson, a publisher of the daily, Web-based Radio and Internet
Newsletter (www.kurthanson.com).
Hanson said the market for online
radio stations is brimming with competition. “There are thousands and thousands
of Internet radio channels right now,” he said.
Companies have taken two approaches
to the industry — either operating a huge multichannel site or starting
up a targeted niche Internet radio station. The multichannel sites like
NetRadio.com feature 120 channels of programming for listeners to choose
from.
But that’s not to say that the niche
market can’t be profitable. “If (Kaufman) can work this up so eventually
he’s got a couple hundred listeners simultaneously with advertising, he’ll
be making good money … that could be a nicely profitable business,” Hanson
said.
Kaufman’s plan of attack includes
a variety of revenue streams. Besides banner ads and on-air commercials,
he’s open to per-inquiry advertising, or PI advertising. Examples of PI
advertising can be seen on late-night television. Think Ginsu Knives and
singing fish plaques. An advertiser can hawk its goods without paying for
air time, but the station gets a percentage of whatever is sold.
“We’ve never lost any money, and
we’ve made money since day one,” said Kaufman. “I will do this show until
a nurse has to take me to the bathroom … When I’m too old, the audience
will be too old — we’ll erode together. I’m in this for the long-run.” |