Apple Eying iHeart Alliance?
• This is fascinating… The Financial Times is reporting that Apple may be looking at traditional radio to help boost its streaming service. To that end, Apple is reportedly exploring a financial partnership with iHeartMedia.
As the story reads, “iHeartMedia is hoping Apple will take an equity stake worth tens of millions of dollars, according to one person briefed on the talks. Another person suggested that the tie-up could result in a multimillion-dollar marketing partnership rather than a direct investment.” The piece continues, “A partnership could see Apple Music’s Beats 1 radio station, which is only available through its apps, make its debut on broadcast radio. Extra distribution would give Beats 1 and Apple Music greater awareness among older audiences who are later adopters of streaming services. A deal would also put the Apple station into more cars or kitchens.”
As the story goes on the theorize, “If Apple were to build closer ties with the network, it might be able to increase its influence in the industry. One music industry executive described the potential deal as a ‘power move’ by Apple, which is constantly vying with Spotify to persuade more artists and labels to strike exclusive or early releases for its streaming service.”
Discussions between iHeartMedia and Apple remain at a preliminary stage and no deal has been agreed, people with knowledge of the situation said. Both Apple and iHeartMedia declined to comment.
