Renowned American multinational tech company Apple Inc. is reportedly exploring the possibility of a tie-up with Texas-based radio group iHeartMedia in an effort to boost the company’s streaming service.
Sources familiar with the matter claim, discussions between the two firms are currently in preliminary stages with no agreed upon conclusions yet. According to a report by Reuters, iHeartMedia – which earlier this year filed for chapter 11 bankruptcy – hopes that the Silicon Valley giant would acquire an equity stake in the corporation worth millions of dollars. However, it is highly likely that the tie-up would end up in a multimillion-dollar agreement for a marketing partnership instead of a direct investment.
Reportedly, the partnership could potentially lead to Apple’s Beats 1 radio station, currently only available on Appstore applications – to make its debut in the domain of broadcast radio – a move that could give Apple Music and Beats 1 access to an older demographic that mostly adhere to traditional mediums of entertainment. Moreover, the deal could also help Beats 1 to increase its presence in more vehicles and houses.
In spite of its financial woes, iHeartMedia reportedly still remains USA’s top radio broadcaster with over 850 radio stations across the nation, making it an extremely valuable aspect of the country’s music industry and lucrative marketing unit.
Reports claim, if successful the tie-up would facilitate Apple with a marketing medium that would help the company grow its influence inside the industry further. An executive from the music industry dubbed the potential agreement as a power move by Apple which is constantly jostling with music streaming giant Spotify to attract more labels, artists, and musicians into exclusive deals for the company’s streaming services.
According to reports, given that the talks are in their infancy, both firms refused to elaborate on the discussions or the potential deals that would be the outcome of a tie-up.