Internet Radio

The History of Internet Radio

The rich history of Internet radio broadcasting begins in New York City, at least for our purposes, in early 1999. March 3rd, 1999 to be precise. When Carl Malamud broadcasts the first Internet radio talk show aptly titled “Geek Of The Week.”

This was reported by the New York Times in the very next edition, March 4th, 1999, as you can see in our visual timeline. Believe it or not, our radio enthusiast staff actually purchased the original NYT photograph from eBay. Not only to scan and display on this page but to mount in the Gecko offices like a championship banner hanging from the rafters.

College Student-Run Radio

Speaking of championship banners, it was UNC’s WXYC that was the first official radio station in the world to simulcast an off-air Internet radio transmission on November 7th, 1994. However, less than a month later, it was KJHK‘s college student-run radio station, The Sound Alternative, that went on the air live with a continuous broadcast and never looked back. Apparently, the Tarheels vs Jayhawks rivalry is rooted in more than just blue-blood basketball.

If you are a college student or part of a college-run radio station that would like for your school to start Internet radio broadcasting or review your current setup, please reach out. Gecko caters to college-run radio with affordable Shoutcast plans and Icecast plans. Plus, we love music of all kinds! You really can’t go wrong.

The Age Of Internet Radio Broadcasting

As you might guess, the two colleges quickly caused a high demand for an Internet radio broadcasting platform amongst the majority of radio professionals. Enter RealAudio by RealNetworks. Real, for short, was the first free server software to compress music. In turn, opening up Internet radio broadcasting, at least talk radio, to listeners on dial-up connections: sports, politics, religion, etc.

Then, of course, as the software’s popularity grew so did the Internet’s passion for online radio broadcasting. While music was still a second thought due to bandwidth costs and limitations, the love of radio could not be stopped.

Winamp Wins The Masses

At this point, the Internet radio broadcasting phenomenon was about to explode. It only needed the right catalyst, Nullsoft’s Winamp. Winamp was the player of choice by the masses. It was compatible with more codecs than Real, more eye-catching with customizable skins and audio buttons and an EQ, and was simply more fun. For example, when launching the program a booming voice would let you know, “Winamp, it really whips the llama’s ass!” A shoutout to Nullsoft the software’s creator and logo, the llama.

Shoutcast Radio Craze

Not long after Winamp’s release, Nullsoft would lay claim as kings to Internet radio broadcasting’s thrown. Shoutcast was released and along with it the Shoutcast.com directory. This was undeniably THE hub for all of Internet radio and would soon become the pinnacle of Internet radio’s acclaim. Both listeners and broadcasters alike would flock to this site in droves. To this day, listeners search to find and listen to online radio stations. At the same time, broadcasters (or hosts like Gecko) download and install Shoutcast servers which automatically list on-air broadcasts in the searchable Shoutcast index while the Winamp DSP plugin or encoder is connected to the server. It really is a one-stop shop for online radio: encoder, server, and directory.

Icecast, New Shoutcast Alternative for Linux

Icecast was just a little too late to the party. In fact, you can still read co-creator Jack Moffitt’s original message “New Shoutcast Alternative for Linux” that he sent through the Linux Weekly News mailing list. As you can see, Icecast was released less than a month after Shoutcast. However, it just didn’t have the ease of use that Shoutcast had built-in with the directory, server software, and encoder combination. The Shoutcast Directory, originally called the Shoutcast Yellow Pages, offered an audience. Hard to beat that even if your streaming software is the more advanced of the two.

AOL Buysout NullSoft (Winamp and Shoutcast)

On June 1st, 1999 in what may have been the height of Internet radio broadcasting, AOL acquired Nullsoft for $86 million dollars. Not bad for a couple of dropouts from the University of Utah. Justin Frankel and Tom Pepper single-handedly changed the face of Internet radio broadcasting as twenty-somethings and the landscape of radio forever. To this day, even the begrudging dinosaurs of terrestrial AM and FM stations can’t deny the need for online streaming. The fact is, data can easily reach far beyond the grasp of a physical transmitter antenna.

Small Webcaster Settlement Act (SWSA)

During this time the record industry was scrambling to accrue royalties as the Internet boom drastically changed the way people listen to music. Consider this, the very same day AOL purchased Nullsoft, Napster opened its’ doors (and a can of worms!) – June 1st, 1999. This would start a long and arduous legal battle.

On December 4th, 2002 President George W. Bush signed the SWSA bill into law which in effect kept an army of small webcasters afloat. The law essentially allowed station revenue to determine music licensing fees rather than traditional per-play costs. It also allowed for small webcasters to negotiate privately with SoundExchange, the entity designated by the U.S. Library of Congress to collect and distribute digital royalties to artists.

Copyright Royalty Board Rates

The Copyright Royalty Board is a panel comprised of three judges who review and adjust royalty rates periodically as defined by the Copyright Royalty and Distribution Reform Act of 2004.

On May 1st, 2007 the decision was made to impose a new minimum statutory fee of $500 per annum regardless of station size. Furthermore, the previously negotiated revenue-based rate was removed and replaced with a per-song per-listener formula. Needless to say, this hurt small webcasters and independent Internet radio broadcasting.

A Day of Silence In Protest

As a result, a Day Of Silence was observed on June 7th, 2007 in response to the significant increase set by the CRB. Internet radio broadcasters big and small went off the air for twenty-four hours. Subsequently, many small stations would remain silent.

Until the summer of 2009, when Rep. Jay Inslee proposed the Webcaster Settlement Act bill which would amend the language of the previous SWSA of 2002 law to include the “approval of settlements.” This opened the door again for negotiations between private parties and SoundExchange.

AOL Sells Nullsoft To Radionomy

Several years after the glory days had passed, Internet radio broadcasting was saved again. This time by Belgium’s Radionomy.

It is reported AOL sold Nullsoft for between $5 and $10 million dollars and a 12% stake in the company. This despite neglecting Shoutcast and threatening to shut down Winamp without warning.

Radionomy Ends U.S. Ad Monetization

Unfortunately, the timing was terrible, at least as far as Internet radio broadcasting in the U.S. was concerned. Not long after Rep. Jay Inslee’s Webcaster Settlement Act of 2009 expired, the CRB reviewed royalty rates as required by law every five years.

Once again, the small webcaster, the little guy, was left out. Meanwhile, digital streaming services like Pandora, IHeartRadio, and Spotify took the forefront.

Consequently, Radionomy would pull out of the United States radio market and end U.S. advertising monetization altogether due to another price hike.

The Future Of Internet Radio Broadcasting

What’s next in our history of Internet radio broadcasting timeline? Well, you will just have to wait and see. Although, word on the street is that the BBC will soon drop Shoutcast as their Internet radio server of choice.