2-4-2013
To get the FM Chip into Sprint cell phones later this year, stations will have to part with some of their precious commercial inventory. As part of the agreement with Sprint to get the NextRadio app into Sprint phones, $45 million worth of advertising will have to be spread over stations over the next three years. The agreement circulated to stations (some received it from the Radio Advertising Bureau) calls for $15 million per year in spots to be run, plus a 30% share of the revenue "attributable to the NextRadio app." No matter what, all radio stations will come up on the NextRadio app.
The trade ads may cut into revenue if Sprint is purchasing spots from stations, although there is no word on whether these trade ads are in addition to paid ads. Emmis CEO Jeff Smulyan says if stations agree to spread $10,000 in trade over a year, this should not be a big burden. Sprint says it will sell 30 million smartphones with an activated FM chip over the next three years. You can read the Sprint/NextRadio agreement HERE
(2/4/2013 3:45:59 PM)
More radios are fine. The problem is the broadcaster or industry paying for them when everyone already has a radio and we have streaming on our phones. It’s like investing in hitching posts for every business in America, when everyone is driving cars. It's the old technology that fewer and fewer are using. Invest in radio's real problems: original content (that I can't get everywhere else), reducing streaming costs, and better cellular infrastructure and bandwidth.
(2/4/2013 2:48:37 PM)
"More Radios out there can't be a bad deal..." Yes, Ginny, it can - if the Radio industry has to pay for them all. That logic will have us sending great big checks to GM, Ford, Chrysler and Toyota very soon. Call this deal off now and save us all the embarassment of watching this go down in flames.
(2/4/2013 10:55:32 AM)
How can 'more radios' being available to consumers be a bad thing? We support this effort 100%. Not because we are counting on additional revenue--that would be great but we aren't counting on it.
Think of the 'chip' as a tuner and you begin to see what this can do for the industry.Gone are the days of exclusive access to people looking for audio entertainment and information.
(2/4/2013 9:50:17 AM)
I'm looking at this as a "non-radio" person. I am looking at this as a "ce person". Anyone who thinks that that this Sprint deal is too rich or that it is absurd to pay to add AM/FM to devices is grossly disconnected with reality. Over the past several years, devices that have been invented (mp3, smartphones, tablets, bluetooth speakers, etc.) replace an existing ce device. the one difference between the new devices and the old ones: No tuner! try to imagine what that means in a few more years
(2/4/2013 9:49:06 AM)
Why can't radio focus on being relevant content providers, rather than putting old technologies on life support. I don't want an FM chip in my phone, nor do I want a telegraph in my phone.
Hopfuly local broadcasters realize there is no value in this except for Emmis and Sprint.
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