The Price Of FM In Sprint Phones? $15 Million Worth Of Inventory
February 4, 2013 at 4:51 AM (PT)
In early JANUARY (NET NEWS 1/8), ALL ACCESS reported SPRINT pacted with representatives of the American radio industry that would enable SPRINT customers to listen to local FM radio stations on select ANDROID and WINDOWS smartphones during the next three years. FM radio could be delivered through the NEXTRADIO tuner application or other radio apps or services.
Now, more details are emerging -- specifically compensation to SPRINT -- are coming out.
RADIO WORLD reports, "EMMIS CEO JEFF SMULYAN confirms the deal calls for SPRINT to produce 'a minimum' of those 30 million phones; in exchange for $15 million worth of station ad inventory from broadcasters over each of the next three years; that works out to about $10,000 worth of ad inventory per station."
Additionally, SPRINT would get 30% of the "interactive advertising" business under the deal.
SMULYAN told RADIO WORLD, "The $15 million would be paid in quarterly increments, including agreements on how many FM-enabled phones will be shipped each quarter. EMMIS has begun reaching out to broadcasters in order to garner support."