Clear Channel radio is no more!

In one of the most significant moves in worldwide radio, Clear Channel, until recently 50% owners of the Australian Radio Network, have announced that they have rebranded to iHeartMedia.

This is a clear message from Clear Channel that this is where they see the future of their radio / content business.

The Australian Radio Network currently hold a 10 year licence for iHeart in Australia. iHeartradio has over 50 million registered users worldwide. It has 97 million unique users compared to Pandora at 76 million and Spotify 50 million.

Clear Channel clearly see iHeart as the most significant part of their business for the future and have sent this strong signal to the market.

It’s an attempt to re-shape itself as a multi platform company reflecting the future of most radio companies.

Clear Channel was essentially a local radio business, whereas iHeart is a valuable national and international brand; driven largely via cross promotion from the groups worldwide radio stations.

This change will alter perceptions of the company for the digital age by the stock market, media and the industry in general.

With iHeart accounting for a few hundred million dollars, it's only a fraction of the more than $3 billion in revenue from radio (and outdoor ).

Research company eMarketer says Clear Channels broadcast revenue will be around $15.6 million US over the next few years with digital sales gaining more than 160% to over $5 billion during that period.

The group currently has more than $20 billion in debt.

iHeartMedia is a bold move which makes a lot of sense. It still faces heavy competition from the likes of Pandora, Spotify and Apple.

This move by Clear Channel can’t and won't be replicated by the large radio groups here in Australia.  Southern Cross Austereo recently shut down their online music service Songl and Nova Entertainment are the only Australian licence holders for their online music platform, Rdio.

Clear Channel / iHeartMedia has more than 800 radio stations in over 150 markets and has around 250 million listeners a month. 

Brad March is a Director of Radio Today, is a former CEO of Austereo and has been named Media Executive of the Year. He’s Director of Marchmedia and Pacific Retail Management.