Wednesday, September 17th17.9°C
23373
20950

CEO: iHeartRadio revenue 'hundreds of millions' of dollars annually

LOS ANGELES, Calif. - Clear Channel CEO Bob Pittman says online streaming service iHeartRadio makes "hundreds of millions" of dollars in annual revenue, putting it in the range of Internet radio leader Pandora.

Pittman revealed the figure in an interview about the service reaching a milestone of 50 million registered users and 97 million visitors in May. Clear Channel Communications Inc., iHeartRadio's parent company, was taken private in 2008. It reports its financial results because of public debt, but has never broken out the financial health of its digital streams.

According to its year-end regulatory filing in February, iHeartRadio averaged 143 million hours of listening per month last year, up 29 per cent from a year earlier. Pandora Media Inc., which posted $638 million in revenue last year, had 1.73 billion listener hours in May.

"We're in the hundreds of millions, not billions," Pittman said. "IHeartRadio would be a very valuable company on its own. In the grand scheme of things, it's an extension of the other businesses we're in."

Its usage growth is frequently cited in filings as contributing to Clear Channel's revenue, helping offset a decline in political ad revenue. Last year, Clear Channel's revenue was unchanged at $6.24 billion.

IHeartRadio provides digital feeds of some of Clear Channel's 835 radio stations across the U.S. to computers, Internet-connected cars and mobile devices. It also allows users to create randomly generated playlists on their own based on an artist, song or mood. Streams are free with ads.

Clear Channel has also put on concerts and awards shows with music's biggest acts under the iHeart brand.

In September, Clear Channel reached a deal with major recording label Warner Music Group Corp. to share ad revenue from traditional radio stations for the first time with artists in order to secure lower royalties on the digital side. As part of the deal, Clear Channel also promised to promote those artists more regularly. It was the largest of several deals following similar agreements with artists and independent labels such as Taylor Swift's Big Machine Label Group in 2012.

Pittman said there's no pressure to cut more such deals and noted that they currently create more expenses than benefits.

"We're investing a lot of money because we believe it's the right way to build the future," he said. "I think we'll get a payoff on it one day and we'll build a digital marketplace in which everybody wins."

The Canadian Press


Read more Business News

21097


Recent Trending




Today's Market
S&P TSX15458.88-51.66
S&P CDNX972.51-3.19
DJIA17156.8524.88
Nasdaq4562.189+9.43
S&P 5002001.57+2.59
CDN Dollar0.9086+0.0009
Gold1224.30-11.60
Oil93.92-0.50
Lumber349.00+1.00
Natural Gas4.059-0.018

 
Okanagan Companies
Pacific Safety0.165-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.05
Cantex0.06-0.01
Anavex Life Sciences0.2361-0.0139
Metalex Ventures0.060.00
Russel Metals36.37+0.42
Copper Mountain Mining2.73+0.04
Colorado Resources0.17+0.01
ReliaBrand Inc0.027+0.003
Sunrise Resources Ltd0.02-0.005
Mission Ready Services0.29-0.01

 



23171

FEATURED Property
20682461821 Shaleridge Place
3 bedrooms 6 baths
$1,795,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 1 of 2 Photo: Thinkstock.com1. Move in with your parents or in-laws Explain that you're thinking strategically in moving back home. The quickest way to get into the housing market is to ma...


Price Guarantees

Article written by Linda Bustos Though I’d never recommend “lowest prices” as a unique selling proposition, I notice many retailers use a Price Match Guarantee or even a 110% Guara...


Brangelina and Celebrity vs Philanthropy

This week my wife wrote a blog for our charities website, I thought you may enjoy reading it here: I was planning to write about the incredible philanthropic Miss Angelina when, funnily enough, she ...

_








Member of BC Press Council


22814