In January, iHeartMedia will be offering listeners two new on-demand subscription services that will result in a product audio listeners have never experienced before, and create a much-needed new revenue stream for the company. And it’s just in time, as the race for consumers’ ears has become very crowded of late. Just last week Pandora announced an upgrade to its Pandora One product that includes more skips, replays, and offline listening. And of course Spotify has been in this space for a while; and Amazon also wants in. But it’s clear this new product from iHeart will have something all the others will never have. iHeart posted a blog about the upcoming service you can read HERE.
In 2017, iHeartRadio listeners will be able to instantly replay, save to a playlist, or purchase a song they’ve heard on their favorite radio station. For example, if a Z100 listener hears a song they just have to have, one click and it’s saved to a playlist. There will also be unlimited skips, and listeners will be able to take their favorite radio stations offline and listen. As expected, the company announced at the iHeartRadio Music Festival on Friday that it would be launching the two new services in 2017, and iHeartRadio President Darren Davis says these new technology enhancements to iHeartRadio will “turbo-charge the radio listening experience.”
The new on-demand subscription services will be called iHeartRadio Plus and iHeartRadio All Access. The cost of the two services is still being worked out. The company says, “iHeartRadio’s new on-demand offerings will allow listeners to bridge the divide between music discovery and music collecting by seamlessly incorporating true interactivity into the radio listening experience through a variety of new features.”
Davis says, “iHeartMedia is reimagining radio — with the new technologies and offerings powered by our on-demand options, music discovery, music collecting, and the power of community and companionship fostered by live radio and influential and trusted personalities. iHeartRadio is now combining it all for the first time; there’s no other digital music service that can do this.”
iHeartMedia CEO Bob Pittman added, “While other streaming services have taken a music collection approach to digital streaming, no one has yet built a service incorporating on-demand technology with real live radio — and at a scale that only iHeartMedia can, with its reach of over a quarter of a billion people every month. And only iHeartMedia can leverage the power of radio and bring to market new and innovative ways to extend on-demand capabilities onto the iHeartRadio platform. It’s a monumental shift for the industry as we lead the way into a new era of interactive radio.”
The major labels were quick to praise iHeartMedia for its latest move. Universal Music Group CEO Lucian Grainge said, “Universal Music Group is pleased to welcome a new addition to the growing and dynamic music subscription space with iHeart’s launch of interactive services. We’re glad to build upon our relationship with iHeart, which under Bob’s leadership continues to innovate the radio experience by adding distinct features and services, and attract a broad audience that remains deeply passionate about music.”
Sony Music Entertianment CEO Doug Morris said, “I’d like to congratulate Bob Pittman and the team at iHeartRadio on their move into the subscription music business. This deal further expands our long-running successful relationship, and creates promising new commercial opportunities to engage with the millions of music fans who listen to iHeart every day. We look forward to working with them to develop premium music solutions for radio users.”
Warner Music Group CEO Steve Cooper added, “We’re pleased to be expanding our long-standing partnership with Bob and his team. iHeart’s expertise and reach in radio programming and curation, combined with the full power of streaming technology, is a compelling prospect. These new services will open up the choice of experiences that iHeart offers music fans, while providing our artists and songwriters with a wider range of commercial and marketing opportunities.”
