Breaking News Bar
posted: 6/21/2014 8:22 AM

CEO: iHeartRadio revenue 'hundreds of millions'

hello
Success - Article sent! close
  • This undated photo provided by Clear Channel shows company CEO Bob Pittman. Pittman says online streaming service iHeartRadio makes "hundreds of millions" of dollars in annual revenue, putting it in the ballpark of Internet radio leader Pandora, which posted $638 million in revenue last year.

      This undated photo provided by Clear Channel shows company CEO Bob Pittman. Pittman says online streaming service iHeartRadio makes "hundreds of millions" of dollars in annual revenue, putting it in the ballpark of Internet radio leader Pandora, which posted $638 million in revenue last year.
    Associated Press

 
Associated Press

LOS ANGELES -- 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.

Order Reprint Print Article
 
Interested in reusing this article?
Custom reprints are a powerful and strategic way to share your article with customers, employees and prospects.
The YGS Group provides digital and printed reprint services for Daily Herald. Complete the form to the right and a reprint consultant will contact you to discuss how you can reuse this article.
Need more information about reprints? Visit our Reprints Section for more details.

Contact information ( * required )

Success - request sent close

According to its year-end regulatory filing in February, iHeartRadio averaged 143 million hours of listening per month last year, up 29 percent 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."

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.