Seeking Alpha

AdAge: iTunes Radio launching in Sep., top advertisers on board

  • Sources tell AdAge iTunes Radio (AAPL -1.3%) will launch next month, and that McDonald's, Procter & Gamble, Pepsi, and Nissan are among the initial ad partners.
  • The ad deals are said to "range from the high single-digit millions of dollars to tens of millions of dollars," involve 12-month campaigns, and include exclusivity for specific industries until year's end.
  • Video and audio ads are covered, as are display ads "that will take over whatever screen the consumer is using." Audio ads run every 15 minutes, and video ads every hour.
  • The reported ETA coincides with the expected launch dates for the iPhone 5S/5C and iOS 7.
  • In June, Apple announced iTunes Radio will include both a free, ad-supported service, and an ad-free service that's bundled with $25/year iTunes Match subscriptions.
  • Pandora (P +0.8%) is closing higher, with an assist from B. Riley. iTunes Radio's lack of Android support, and the time invested by Pandora's 71M active users in creating custom stations, could limit the damage done to the Internet radio leader.
Comments (14)
  • bgold1955
    , contributor
    Comments (2208) | Send Message
     
    I beliève P will do ok but competition via iTunes Radio will force it into a more friendly model for non-paying customers. I see both doing well.
    20 Aug 2013, 03:59 PM Reply Like
  • harrykutcher
    , contributor
    Comments (83) | Send Message
     
    is it possible that the new iradio will be part of a new ipod/radio and that it will plug into a car port....and....be part of your iphone system...basically take over "smart car"?????
    20 Aug 2013, 04:34 PM Reply Like
  • Matt Jonza
    , contributor
    Comments (86) | Send Message
     
    I am a frequent Pandora user, probably 2 hours a day on average, maybe more. Once iTunes Radio comes out, I am definitely going to try it out. I am not that invested in my custom stations. But if iTunes radio disappoints in anyway, I'm right back to Pandora and I probably won't look back.

     

    I believe a lot of people out there have the same mindset I do. Hopefully for Apple's sake, iTunes Radio is a much more refined product than Apple Maps was when it debuted.
    20 Aug 2013, 04:48 PM Reply Like
  • User 12315341
    , contributor
    Comment (1) | Send Message
     
    I've only been using it for a day now and I've discovered more amazing music in 1 day than I have in weeks using Pandora. It just feels like iTunes Radio is playing more of what I like...somehow.
    21 Aug 2013, 03:21 AM Reply Like
  • 1980XLS
    , contributor
    Comments (3333) | Send Message
     
    It's been a couple years since they bought Lala.com. Why so long?
    20 Aug 2013, 05:26 PM Reply Like
  • kimboslice
    , contributor
    Comments (1557) | Send Message
     
    I like Pandora on my roku. How does Pandora make money I wonder?
    20 Aug 2013, 05:45 PM Reply Like
  • bgold1955
    , contributor
    Comments (2208) | Send Message
     
    Makes money via ads on non-payers and if you are a paid subscriber (I'm not) I think it is $ 7-8 per month. I get a lot of local business ads, e.g., realtors, retail, etc. so they have a nice "in" with local businesses.
    20 Aug 2013, 06:15 PM Reply Like
  • dgulick
    , contributor
    Comments (1670) | Send Message
     
    Yes, Pandora sells ads. Also, iTunes radio won't be available on your Roku (or Xbox, PS3, Wii, DVD player, TV, etc), it will only be available on Apple products (and things that run iTunes).

     

    I think Apple might have a hit with this, this is basically an admission that Pandora is on to something. Here is an interesting article that sheds some light on Apple's move:
    http://read.bi/13QSOpD

     

    "The reason Apple got left behind is that the big ad money went into independent app publishers, like Facebook and Pandora..."
    21 Aug 2013, 08:14 AM Reply Like
  • rocback
    , contributor
    Comments (1122) | Send Message
     
    If iRadio is good, it will be just one more reason Android users are migrating to Apple.

     

    According to Morgan Stanley’s Katy Huberty, the launch of the “iPhone 5C” could make Apple No. 1 in the world’s largest consumer market. The analyst bases this opinion on a new AlphaWise poll of 2,000 Chinese mobile phone owners, which was first published by Fortune.

     

    http://bit.ly/14zHLBh
    20 Aug 2013, 06:14 PM Reply Like
  • Dennis Baker
    , contributor
    Comments (1371) | Send Message
     
    The huge advantage iTunes Radio has is that it's right there. Anytime you are using iTunes, you have that option. Also, it's easy to convert from a radio song to a library song, pretty much instant and then it's there.

     

    On the other side of the coin, artists are getting frustrated with the lack of compensation from Pandora and Spotify, So much so that some artists have been talking about boycotting the two. With iTunes musicians get a higher payout initially and conversions to sales. That will likely lead to more exclusives (they already get exclusives launches with the existing iTunes, for example Daft Punk).
    20 Aug 2013, 06:20 PM Reply Like
  • dgulick
    , contributor
    Comments (1670) | Send Message
     
    I for one am none too psyched to have to jump past iRadio just to play my own songs, I originally thought iRadio would be a deletable app like iBooks, this integration might be convenient to some, but annoying to others. I had the same problem with the kindle app on my iphone, Apple made Amazon delete the "store" button making purchases more complicated (the iBook app has a "store" button, anyone think this is fair? This tweaked me so bad I will NEVER purchase an iBook again! let the app stand on it's own merits, Apple, these are the moves that brought anti-trust against Microsoft). I remember the last upgrade to iOS deleted youtube (wth!) and don't get me started on Apple's map debacle, this one will haunt Apple for years.

     

    Despite all of my gripes, I have always been able to find a workaround to use the app/ecosystem that I want, so for now, I'm still an iPhone user, the functionality and ease of use for so much of what I do still trumps Droid. And I love Apple's laptops/iMacs, OSX is top notch, and worth the additional cost. But these moves to keep users "in the garden" are growing tiresome. I thought I was buying best-of-breed products and integration, not being told where I could shop for my content or what Apps I should use! Apple isn't alone, getting internet explorer to not default to Bing is an example, but much more of this and I will be looking at Samsung/Google (can't we all just get along...)
    22 Aug 2013, 12:38 PM Reply Like
  • Hope128
    , contributor
    Comments (129) | Send Message
     
    I have been using iRadio beta for a few weeks and it is very neat, just choose my favorite radio station and let it play on my ipad mini in background or standby mode, tons of nice songs, and quality is good, music cover art is vivid, and no ads so far. Definitely use it dialy. Once it is official, an ads every 15 mins is acceptable.
    21 Aug 2013, 11:29 PM Reply Like
  • groovyd007
    , contributor
    Comments (2) | Send Message
     
    Seriously, who wouldn't pay the $25 a year to just drop the ads and include the whole iMatch setup. iMatch alone is well worth $25 a year, this only sweetens the deal. I see Pandora's days are numbered along with many other streaming radio-like services.
    25 Aug 2013, 09:07 PM Reply Like
  • dgulick
    , contributor
    Comments (1670) | Send Message
     
    Until they triple the price to defray Carl Icahn's stock buybacks!
    26 Aug 2013, 08:27 AM Reply Like
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