Why Apple Radio Should Have a Free Option (With Commercials)
By
Staten Island, NY Posted: 4/13/2016 1:00:00 AM
Not everyone is willing to pay for radio, especially casual listeners.
When Apple Radio launched, it was just like Pandora and iHeartRadio. It was a free music service that let people create their own custom "Stations" featuring their favorite kinds of music. Since the service was free, there were commercials, just like traditional radio.
For most casual users, the inclusion of a commercial every now and then was completely normal. After all, radio stations have been running commercials for almost 100 years.
However when Apple acquired Beats Music, they decided to change Apple Radio to a subscription model without commercials. This means that casual listeners like me who are unwilling to pay have no other choice but to use a competing service.
The key point is that losing these non-paying customers also means losing the potential for commercial revenue that they would've generated, especially since they could've served them extremely targeted commercials.
Unlike traditional radio, Internet radio has the potential to not only target generic advertising based on geographic locations, but also based on an immense amount of other data based on their age, gender, listening preferences, and even their web search history. Being able to deliver a relevant ad to a listener based on data like that means that they can charge much higher rates than terrestrial radio.
Joe Crescenzi, Founder
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