Notes: According to the Financial Times, Apple is exploring a stake in iHeart Media, the US radio giant, to boost its streaming services. IHeartMedia has filed for bankruptcy protection, but operates more than 850 base stations across the United States, which is of great value to the music industry.
On Thursday, Nov. 1, the Financial Times quoted people familiar with the matter as saying Apple was exploring a stake in iHeart Media, the US radio giant. However, negotiations between the two sides are still in contact, and no agreement has been reached between the two sides.
For Apple, the move means it is targeting its traditional broadcasting business to boost its streaming services and expand the coverage of music applications. Despite its financial difficulties, iHeartMedia remains the largest radio station in the United States, operating more than 850 base stations across the United States, and of great value to the music industry. Apple can increase its influence in the music industry.
For iHeartMedia, the Financial Times quoted people familiar with the matter as saying iHeartMedia wanted Apple to buy tens of millions of dollars in equity, while other people familiar with the matter said the two sides could forge a multi-million dollar market partnership rather than direct investment.
Under the impact of emerging streaming services such as Pandora, Spotify and Apple Music, the number of users has been lost. The company has been burdened with $20 billion in debt and is on the verge of bankruptcy. In March of this year, it filed for bankruptcy protection. Its creditors will submit a restructuring plan to the bankruptcy court at the end of this month, hoping to find potential investors before then.
In addition, the two sides may have reached a cooperation on the Beats 1 radio on Apple Music. Currently, the station is only available on the app. If the cooperation is successful, Beats 1 is expected to appear on the radio station. The new channel will allow Beats 1 and Apple Music to gain a higher profile among older viewers. Of course, cooperation may also cause Apple's radio stations to appear in more cars or kitchens.
In the field of streaming media, Apple Music and Spotify are the two most popular streaming media service providers in foreign countries, and the two largest streaming media platforms with the largest market share.
From the perspective of paying users, Spotify is still ranked first, revealing its paid users reached 83 million in the latest second-quarter earnings.
However, in May of this year, Apple CEO Cook also said that including a small number of free trial users, Apple Music's overall streaming music users have exceeded 50 million.