Casey

Clear Channel touts digital growth on earnings call; iHeart customizable radio to remain ad-free for time-being

Wednesday, February 22, 2012 - 1:00pm

The manner in which Clear Channel dealt with its digital business on yesterday's earnings call should come as no surprise to anyone who's been listening to CEO Bob Pittman lately (see RAIN here). Radio-Info reports today that Clear Channel CFO Tom Casey began the call "by talking about iHeartRadio app and last September’s successful iHeartRadio Music Festival... Casey talked frequently about digital initiatives and investments, both around the radio platform and at Clear Channel Outdoor. (The hottest thing going in out-of-home advertising is digital displays.) And digital seems to be the growth engine, as you can see from the Fourth Quarter results..."

Casey told investors digital ad (streaming and display) revenue is “growing nicely,” Taylor reports. And this mirrors the industry overall (see yesterday's coverage of RAB's revenue report here). However, the customizable feature of the company's iHeartRadio service -- the company's answer to Pandora -- has been commercial-free since its launch, and will remain so for the foreseeable future. The apparent thinking is about building usage, and not jeopardizing early adoption with an overload of ads. 

"Casey said the company was getting great feedback from listeners, is not monetizing iHeartradio and has no plan to do so right now," Radio Ink writes today. Casey reported 48 million downloads of the iHeartradio app in 2011, and 37 million monthly uniques from all the company's digital products and brands.

Read more in Radio-Info here; more in Radio Ink here.

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