Clear Channel’s purchase of Thumbplay sends out a variety of messages to the radio industry. The cloud-based music subscription company may have cost Clear Channel somewhere in the range of $40 million dollars, and the apparent play is to integrate it with iHeartRadio and the company’s other assets.
So what’s the big deal? First, a deal of this magnitude speaks volumes about the price of admission for radio into the digital music/subscription space. Second, the deal is recognition that streaming music services are indeed a big deal. And third, an aggressive move like this sends a message to the radio industry that someone in a big position is finally taking Pandora seriously.
Bob Pittman’s (Clear Channel’s chairman of media & entertainment) comments as reported in RAIN are worth a closer look:
- “We need to get ahead of the curve and not behind it.” That statement may be the first of its kind by a radio executive, most of whom have had to play catch-up with digital. The purchase of Thumbplay and Pittman’s goal to lead rather than to follow is a significant statement.
- “This is step one.” You can interpret that one for yourself, but the statement is bold and holds a great deal of promise about Clear Channel’s intention to be an even bigger player in the digital area.
- “The acquisition of Thumbplay’s music business…(will) ensure that our listeners have the radio and music experience they want, on whatever device or platform they prefer.” Pittman sounds like a media exec, not a radio broadcaster. As we reported from CES in January, players as diverse as Jeff Bewkes (Time Warner) to Ivan Seidenberg (Verizon) were speaking from that same hymnal. In fact, Bewkes stated, “Watch what you want. Anywhere. Anytime.” Pittman’s on the bus.
Clear Channel is finally redefining what it means to be “big.” In the past, it was big based on sheer bulk – numbers of stations owned in many markets.
Today, “big” is being recast as leadership, vision, and bold moves.
This is a big deal.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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