Apple exploring iHeartMedia investment
Apple has been in discussions over making a large equity investment in iHeartMedia, the largest radio station group in the US (w/ 850 stations and 250M+ monthly listeners) and the largest outdoor advertising company in the world (under the Clear Channel brand). iHeartMedia also operates the free, ad-supported music and podcast streaming service iHeartRadio. (Context: iHeart is going through bankruptcy proceedings to eliminate at leats half of its $20B in debt.)
Promotion
As Apple looks to keep growing Apple Music and preps to launch an OTT film/TV service and a subscription news bundle, iHeart would be a powerful promotional partner for all its content offerings. It could also bring the Beats 1 "radio" station on Apple Music to terrestrial radio.
I expect Clear Channel is part of the potential synergy/partnership here. Keep in mind that Netflix spent $150M this year to acquire 30 billboards along the Sunset Strip in LA.
Power
While streaming music is gaining ever more dominance in breaking new musicians, getting airplay on radio is still critical for turning a musician into a major star. And record labels dominate influence over what radio stations play. It's a key reason to still get a record deal.
If Apple (or Spotify) could get a new musician on terrestrial radio across the US through ownership/partnership with iHeart, that would be a big blow to record labels.
Liberty Media
An Apple investment would be a blow to John Malone's Liberty Media, which bought several hundred million dollars in iHeart debt and made a $1.16B offer for 40% equity stake earlier this year. It seems to still be keen adding iHeart as part of its music portfolio that includes SiriusXM + Pandora and Live Nation.
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