Clear Channel Launches Online Radio Network

Radio giant Clear Channel is partnering with Katz Media to launch 1200 online radio channels.

According to a press release from Clear Channel, the new online radio network will stream under the moniker: "Katz Online Network." The combined stations will consist of Clear Channel traditional terrestrial radio stations, Katz Media's radio partners and other independent online stations.

The new Clear Channel initiative is the first high-profile offering from a major broadcaster that will incorporate independent Internet radio stations with online and mobile streams of traditional AM and FM signals. Clear Channel's stations will be joined in the consolidated stream by a number of other terrestrial broadcasters including: Cumulus, Cox Radio, Emmis Communications and Salem Broadcasting. Accuradio, Digitally Imported, Radioio and SmoothJazz.com are among the Internet broadcasters supplying independent programming for the Katz Online Network.

The move to consolidating Clear Channel's massive radio presence with Katz Media online is a fairly obvious business move for the broadcaster. The trend of radio consumers migrating their listening habits online continues to grow. Listenership levels, tracked by ratings and research groups such as Arbitron and Edison Media show that last year alone online radio listening gained four million extra listeners a week.

Katz Media, a subsidiary of Clear Channel Communications, specializes in sales and marketing of Radio and Television. The partnership will allow Clear Channel to repackage their existing content and give advertisers and advertising agencies a single use portal to spend their ad dollars on the growing online digital audio audience. According to Brian Benedik, president of Katz 360 Sales, a unit of Katz Media Group: "Whether it's a national platform, a regional plan or a specific geo-targeted campaign, the Katz Online Network can be customized to any advertiser's audio needs."

Clear Channel undoubtedly envisions that the new Internet radio entity will open up new revenue streams for the traditional broadcaster. The move will not only allow them to air commercials within the digital audio streams, advertisers will also be able to combine pre-roll audio or video, invest in display or video ads and target their ad dollars with banners on the Katz Online Network media players.

It's quite a consolidation coup for Clear Channel any way you shake it. Especially considering that according to Ando Media, a company that specializes in measuring Internet Metrics for online radio, CBS Radio has been eating Clear Channel's lunch lately with online listening. According to Business Week, Ando's metrics showed CBS Radio leading the pack with online radio ratings in June by over a half a million listeners.

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