Charlie Cook On Air: Apple vs. Pandora
Things move so quickly today that staying on top of things has you about two steps behind. My favorite saying is being on time makes you 15 minutes late. The same can be said for being in the music and radio business today.
There are those leading the way. Scott Borchetta and Bob Pittman sat down together somewhere about a year ago and changed the relationship between records and radio. Both have continued to forge relationships to benefit their respective companies today and into the future. Scott found a new revenue source that came without anyone feeling that they were being pressured to hand over money under duress. Mr. Pittman, with the biggest gun in the fight, guaranteed he would have ammunition at a controlled cost going forward.
Now CBS is rolling out its guns and CEO Dan Mason has deftly tied his Top 40 radio stations into his imitative to the record industries. Naming the project Amplify ties nicely into the Amp CBS Top 40 stations. CBS has also brought to the table some new things in long form programming for both the businesses’ superstars with a promise to help emerging acts.
A lot of this is being done to put a lid on future streaming costs for the terrestrial companies. Understandable when you look at the costs being paid by Pandora, Spotify and iHeart for streaming. If you know the expenditure for streaming, you have ask yourself if the costs make it possible to believe the concept can ever financially work. But Apple is getting in the game.
The labels cut a questionable deal with Apple for iTunes and now they want to get it all back with iRadio. iTunes redesigned the music purchasing world. It replaced a business that was probably at a tipping point of failure anyhow but it certainly killed the CD concept and Apple keeps much of the money. Apple is mulling iRadio which is not really radio as we know it more like iHeart and Pandora. Apple would like to duplicate the financial advantage they have with iTunes. They proposed paying half of Pandora’s cost and less than a third of what iHeart and Spotify pays today.
Apple comes into the game as the biggest player in the world. Yeah all of the other services play on their equipment but they control the landscape and can tie everything they do into iRadio. Apple has also already proven they can move the needle. I mean whose stock would you rather own? Apple? Pandora?
Is it worth a 50-70 percent discount? Only the record companies are going to be able to determine that. They have a profitable partner in Apple, unlike the other streaming services. And this is before Apple has trained their sights on Pandora and iHeart. If you were going to bet on one, maybe two, in the next 10 years where does your money go? Pandora generated less than $400M in ad revenue last year. They say they have eight percent of US listening. Terrestrial radio did $15B. Radio sales works on a power ratio formula. If you have an 8 share in the market you should be taking eight percent of the revenue of the market for a power ratio of 1.
What should eight percent of the listening in the US mean to Pandora? Eight percent is $1.92B. Where is that going to come from? Terrestrial radio continues to grow, albeit slowly, every year.
Are there enough sales people to generate this kind of money? I estimate there are 30,000 radio sales people for Terrestrial radio. Sales people, particularly ones selling air and brands, are not under every rock. Even Apple doesn’t have enough blue shirts to go around. They do have revenue from millions of iPhones every quarter, fees from all of the cell phone companies, every non-free apple app and the majority of music downloads.
I wouldn’t want to be Pandora or Spotify staring down that barrel.
(The views expressed in this article are those of the author and do not necessarily reflect those of MusicRow.)


Here To Party has a video, but no radio single. However, considering the Georgia heartthrob’s Dirt Road Diaries Tour, an upcoming CMT Spring Break special and his co-hosting the ACM Awards on April 7, it’s highly likely this music will not be a closely guarded secret.
Digital country albums as a percentage of total country albums was about 25.4 percent a year ago at this time but more country fans are now choosing digital as shown by the seven percent increase. All-genre digital album sales as a percentage of total album sales, now about 44.8 percent has also grown about seven percent compared to the same period last year.
And then there is this week’s No. 2 country album, now in its 14th week on the chart with RTD sales of 385,308 units and sporting one of the format’s most incredible success stories—Florida Georgia Line. FGL enjoyed a 21 percent boost in album sales this week, plus lodged two Top 10 tracks in the Digital Genre country tracks chart.
Radio and television personalities Lorianne Crook & Charlie Chase, Ralph Emery, Bill Cody, Larry Black, Rick Marino & Lisa Manning, Bill Mack, and Keith Bilbrey are all set to take part in George Jones’ final Nashville concert. The event will be held on Friday, Nov. 22.
Camp Southern Ground has named Rob Parker as the Camp’s first President & CEO, beginning May 1, 2013. Board Chairman and Founder Zac Brown said of Parker’s hiring, “Rob Parker is a great asset to our organization. He is a true leader and has a tremendous appreciation for children and our mission at Camp Southern Ground. We are honored to have him be part of our family.”
NBC’s “The Sing-Off” returns for Season four and will hold auditions in Nashville on May 4. “The Sing-Off” competition is exclusively for acapella singing groups and has featured a number of Nashville talents, including Jeremy Lister and Jack White bandmate Ruby Amanfu. Nashville auditions will be held at S.I.R. Studios (1101 Cherry Ave.). Doors will open at 9 a.m. and participants are required to register at
The T.J. Martell Foundation has announced its Women of Influence Awards to be held Tuesday, May 7, 2013 at Riverpark, a Tom Colicchio restaurant in New York City.
The Band Perry, Brantley Gilbert, Justin Moore, Florida Georgia Line, Greg Bates and Cassadee Pope are ready to rock for a good cause. AXS TV and Big Machine Label Group will broadcast ‘Outnumber Hunger Live!,’ a two-hour concert special airing from Las Vegas on April 6, beginning at 9 p.m. ET. Big Machine Label Group, General Mills and Feeding America have teamed-up for a second consecutive year for Outnumber Hunger, a campaign that helps fight hunger in local communities.

Dierks Bentley, Keith Urban and Lady Antebellum, along with international music sensation Pitbull, have been added to the all-star lineup of artists scheduled to perform at the ACM Presents: Tim McGraw’s Superstar Summer Night taping on April 8 at the MGM Grand Garden Arena in Las Vegas. These artists join previously announced performers Jason Aldean, Luke Bryan, Taylor Swift and Ne-Yo. The special will be broadcast at a later date on the CBS Television Network.
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Darius Rucker will release his third country studio album, True Believers, on May 21. Rucker co-wrote 10 of the 12 tracks on True Believers, produced by Frank Rogers.
A 41-year-old man is in custody on suspicion of murder following his arrest in Imperial Beach near San Diego, Calif., reports