Microsoft radio venture gives DJs pause
Fans of the Seattle music pop station Kiss 106.1 FM usually have to sit through an array of disc-jockey antics and advertising between listening to favorite artists like Avril Levigne and Ashlee Simpson.
But not anymore. As part of its much-touted new MSN Music offering, Microsoft Corp. is testing a Web-based radio service that mimics nearly 1,000 local radio stations, allowing users to hear a version of their favorite radio station with far fewer interruptions.
It's a move analysts say is annoying, but not seriously threatening, the stations.
"Because it's a beta and because it's Webcasting, it's not yet considered a tremendously important competitor to radio," said Brida Connolly, technology editor at the Los Angeles trade publication Radio & Records. "At this stage it's considered more of an irritation."
The service also poses no serious problems yet because most people still listen to commercial radio in their cars and Internet broadcasting is still in its infancy, analysts say. But they warn that the service could be a harbinger of more competitive online threats to come.