Apple in Talks to Buy Stake in U.S. Radio Group iHeartMedia
Apple has held talks with iHeartMedia to buy a stake in the U.S. radio company, according to a new Financial Times report citing people familiar with the matter.
iHeartMedia is currently $20 billion in debt, with audiences gradually turning away from radio in favor of digital music services like Spotify, Apple Music, and Pandora. The radio group filed for bankruptcy in March, and has been in contact with several potential investors ahead of a deadline later this month to file a reorganization plan with the bankruptcy court.
iHeartMedia is hoping Apple will take an equity stake worth millions of dollars, according to FT sources, although discussions between the two companies are still in the early stages and no deal has been agreed. Apple declined to comment, while iHeartMedia did not respond to multiple requests for comment.
The report suggests Apple is angling for a deal in order to gain a platform for wider distribution of its Beats 1 radio station and increase awareness of Apple Music:
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.
Despite being billions of dollars in debt, iHeartMedia remains the largest radio broadcaster in the United States, with more than 850 stations operating across the country. One music industry executive who spoke to FT described the potential deal as a "power move" by Apple, as it aims to persuade more artists and labels to strike exclusive or early releases for its streaming service instead of its biggest rival, Spotify.
Apple Music surpassed 50 million subscribers and free trial users earlier this year, giving it a bigger share of listeners in the U.S. than Spotify, although Spotify is still the global leader with more than 80 million paying users around the world. Earlier this year, Apple acquired music recognition app Shazam for $400 million in order to improve Apple Music's listening recommendations.
Popular Stories
Apple has "started to record" its virtual September event, where it's expected to announce the upcoming iPhone 14 lineup, the Apple Watch Series 8, and a new "rugged" Apple Watch model, according to Bloomberg's Mark Gurman. Writing in his latest Power On newsletter, Gurman says the event, which is expected to take place in the early part of September, is already under production, implying...
The standard 41mm and 45mm models of the Apple Watch Series 8 will feature the same design as the Apple Watch Series 7, according to Twitter user @ShrimpApplePro, who was first to reveal that iPhone 14 Pro models would feature a new pill-and-hole display.
Titanium will not be an option for the standard Apple Watch Series 8 models either, according to @ShrimpApplePro, but Bloomberg's Mark...
The iPhone 14 and iPhone 14 Pro models are rumored to be available in a refreshed range of color options, including an all-new purple color. Most expectations about the iPhone 14 lineup's color options come from an unverified post on Chinese social media site Weibo earlier this year.
Overall, the iPhone 14 and iPhone 14 Pro's selection of color options could look fairly similar to those of the ...
With the fifth beta of iOS 16, Apple has updated the battery icon on iPhones with Face ID to display the specific battery percentage rather than just a visual representation of battery level. The new battery indicator is available on iPhone 12 and iPhone 13 models, with the exception of the 5.4-inch iPhone 12/13 mini. It is also available on the iPhone X and the iPhone XS. Battery percent...
The camera bump on the upcoming iPhone 14 Pro Max is expected to be the largest rear lens housing Apple has ever installed on its flagship smartphones, and a new photo offers a rare glimpse at just how prominent it is compared to Apple's predecessor device.
iPhone 14 Pro Max dummy (left) vs iPhone 13 Pro Max All iPhone 14 models are expected to see upgrades to the Ultra Wide camera on the...
A new rumor claims that the next-generation 12.9-inch and 11-inch iPad Pro will feature a new four-pin Smart Connector, an update from the current three-pin connector in the iPad Pro.
The rumor from Mac Otakara, citing "reliable sources," says that the next iPad Pro, expected to debut possibly as soon as this fall, will feature a new Smart Connector that has four-pins rather than three. The...
Top Rated Comments
[doublepost=1541077779][/doublepost]"Extra distribution would give Beats 1 and Apple Music greater awareness among older audiences who are later adopters of streaming services."
If you've ever listened to Beats 1, the one thing you can count on is that their demographic is anything but an older audience. Apple needs to break out Beats 1 into many genres if they want to attract demographics other than 15-18 year old urban youth.
But, Beats 1 is far too US and UK centric. That means way too much hip hop/rap/trap and grime. Apple needs to break off into local stations for major cities with Beats 1 then playing the best of each station that might appeal to a global audience. I’d love a Beats Toronto, Beats Tokyo, Beats Rio, Beats Johannesburg...
That had to be a typo