WOXY Abruptly Goes Offline; Streaming Ain’t Cheap
I–along with many other online radio fans–was surprised to learn this morning that online indie rock station WOXY abruptly shut down its live stream this morning. The only explanation was a short blurb on their website blaming “current economic realities and the lack of ongoing funding” for the closure. The situation was all the more surprising given the station’s intensive participation in SXSW just last week.
Pop Candy received some information directly from WOXY music director Matt Shiv who said the staff knew there were financial troubles, but maintained operations last week at SXSW because “a deal was ‘in motion’ to continue funding.” The staff only received notice of the closure from owner Future Sounds on Monday and were given no opportunity to say goodbye to listeners.
WOXY has certainly had a bumpy ride going from being a commercial FM station in Oxford, OH, going online-only in 2004, being bought by lala.com in 2006, and then being being sold to Future Sounds and moving operations to Austin last year. As I wrote last month, WOXY was one of my favorite commercial broadcast stations and I continued to be an online listener.
Unfortunately the closure of WOXY only reminds me that online streaming radio is not necessarily an inexpensive enterprise. By comparison traditional broadcast has higher fixed costs. A station must have a real brick-and-mortar studio and a transmitter with tower, and must maintain these technical operations in accordance with federal laws and regulations. Without even accounting for staffing, and depending on location, these base costs easily start at the low six figures annually.
Streaming stations don’t require much in the way of a physical studio–though certainly some of the best ones, like WOXY, have them. They also don’t require transmitters and the power to run them, nor compliance with FCC rules. But while free of these liabilities, streaming stations do have other significant costs to bare.
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