Cumulus Lew Dickey Talks Up Rdio, Talks Down Pandora
June 27, 2014 at 3:53 PM (PT)
CUMULUS MEDIA INC. CEO LEW DICKEY JR. talked up the company's 15% stake in RDIO in an interview to the AP. NEWSWER.COM reports that DICKEY viewed the investment as a long-term bet on the future.
"This is a scale business," DICKEY continued. "RDIO's in 51 countries. JANUS FRIIS (who co-founded SKYPE) has spent close to $200 million on this business to build it. This is a business that will be a global scale business and I think there will be handful of survivors at the end of the day. I believe the digital music space today is very nascent. I liken it to the MYSPACE phase of social. I don't think it's clear who the winners are going to be."
The consensus early Net radio winner so far has to be PANDORA, yet DICKEY downplayed their success. "PANDORA self-measures. So they're, in essence, quoting their own numbers and they're using disparate data sources. They've been very clever in terms of the story they've told, but the actual numbers would tell a different story when held under close scrutiny."
That's undoubtedly why, when asked who's CUMULUS' biggest rival, PANDORA or CLEAR CHANNEL, DICKEY answered, "It's CLEAR CHANNEL. It's not PANDORA. The digital services -- which is why we put our toe in the water and took a stake in RDIO -- we believe the digital services are increasingly going to play a role in the business."