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ftm Radio Page - September 7, 2012

Pulse quickens at Apple web radio rumor
“not imminent”

First the Wall Street Journal then the New York Times ran (September 6) with sparse details of plans by Apple to offer some sort of web radio service. Talks between Apple and music companies are engaged, apparently, to find a rights solution agreeable to all. Apple’s web radio service would be free, supported by advertising.

Web radio continues to gain traction among listeners searching for unique music playlists. Aggregators like Pandora and Spotify are popular in their respective geographies. Many radio broadcasters offer adjunct web services. A web radio service from Apple would be just one more music service. (See more on web radio here)

Smartphone maker Nokia is offering 150 music streams in the US through its Lumina device. Music rights – a big revenue stream for the music companies and a big expense for broadcasters, web and otherwise – have slowed development of web radio. Several observers of the “not imminent” Apple web radio plan note the late Steve Jobs dismissed the idea saying people don’t want to rent music. Others report that the Apple TV project seems to be stalled. (JMH)

Another Murdoch heard from
Radio down under

Lachlan Murdoch, son of Rupert Murdoch, is moving forward his broadcast interests in Australia, acquiring the 50% in DMG Radio Australia he didn’t already own, reports the Australian (September 3). He had owned DMG Radio Australia jointly with UK based media group Daily Main and General Trust (DMGT) since investing AUS$110 million in 2009. DMG Radio Australia owns and operates smoothfm franchises in Sydney and Melbourne, NovaFM franchises in Sydney, Melbourne, Brisbane, Adelaide and Perth, FIVEaa in Adelaide, Central Coast station Star 104.5 plus two national digital radio channels.

“The EBITDA of DMG has doubled and the IRR on our initial investment is more than 60 per cent,” said Mr Lurdoch donning the green eyeshade.

This might only be the beginning of Lachlan Murdoch’s Australian radio quest. The Fairfax media house put its radio assets up for sale last year but turned down a bid from Macquarie Radio Network. Mr Murdoch has an option on the Fairfax radio operations, reported the Australian, which is owned by News Corporation. (JMH)

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