Apple are looking to put money into iHeartMedia so that they can get broadcast radio promotion for Apple Music and Beats 1.
Apple apparently consider themselves an under-recognised brand as a new report claims that they are looking for promotion. According to a report by the Financial Times Apple are looking at investing iHeartMedia in a potential marketing partnership that would see the company’s broadcast radios promoting Apple’s streaming service Apple Music and their online radio station Beats 1.
Apple aren’t exactly outsiders lacking recognition in the music streaming realm but they aren’t the biggest player either – which to Apple is a significant flaw. Spotify just revealed that they have 191 million total users which is significantly higher than Apple who last reported having just surpassed 50 million subscribers. So to gain awareness Apple are looking to iHeartMedia and their extensive radio brands, both digital and terrestrial.
Earlier this year iHeartMedia filed for bankruptcy to clear a whopping $20 billion in debt. An investment from Apple, which could reportedly be tens of millions of dollars, could give a big boost to iHeartMedia as they look to escape their financial issues. Especially considering that later this month in November the bankruptcy court will have a reorganisation plan.
Discussions between the two companies are still reportedly in their very early stages and no deal has been outlined or agreed to. Neither Apple nor iHeartMedia have commented on the report or how factual it is yet. According to the report the deal would be based around promotion of Apple and their music services on iHeartMedia’s hundreds of traditional radio stations.
iHeartMedia is said to reach 270 million people a month via radio and then another 100 million via music services and streaming radio. The report cites a music industry executive saying that they think this is a “power move” by Apple.