Some Major Advertisers On Board For Launch Of iTunes Radio
August 21, 2013 at 4:00 AM (PT)
APPLE is continuing to prep iTUNES RADIO, with the webcaster "set to debut next month with a handful of high-profile brand partners including MCDONALD'S, NISSAN, PEPSI, PROCTER & GAMBLE and possibly one or two more brands, according to a report in ADAGE.
Last month, APPLE came to terms with record labels, with reports that APPLE intends to pay royalties to labels based on a blend of how many times listeners hear their songs and how much advertising APPLE sells. Those receiving royalties are likely to be happy with the news that advertisers seem to be on board early with the service.
iTUNES RADIO is also offering their launch partners "exclusivity within their respective industries through the end of 2013," adds ADAGE. "Come JANUARY 2014, however, ads on iTUNESRADIO will become widely available, provided an advertiser agrees to the minimum buy-in of around $1 million, according to sources briefed on the product."
In addition to ads sprinkled throughout the music, APPLE also reportedly plans to offer some branded stations, with blocks of free listening brought to listeners by specific advertisers.
ADAGE also notes, "iTUNES RADIO inventory will be sold via iAD, APPLE's mobile ad network. No surprise then that the debut of the ad-supported iTUNES RADIO service closely resembles iAD's 2010 launch; a select few launch partners, high minimum buy-ins and lots of fanfare."