Cumulus Deepens Digital Ties With Acquisition Of Major Stake In Parent of Rdio
Tuesday, September 17th, 2013
As radio broadcasters go digital and online music services try to stand out in a crowded market, both are finding ways to scratch each other’s backs.
On Monday, Cumulus Media, which operates 525 radio stations, will announce a deal with Rdio, a subscription music service from the founders of Skype, that will give Cumulus an online outlet and help Rdio compete against more established players like Spotify.
In exchange for what it calls a significant equity stake in Rdio’s parent company, Pulser Media, Cumulus will give Rdio broad access to its programming and promote Rdio on its stations.
“This is our digital play,” Lewis W. Dickey Jr., the chief executive of Cumulus, said in a joint interview on Friday with Rdio’s chief, Drew Larner.
