The Colorado-based publicly traded company behind a technology that can transform commercial broadcast radio to a subscription-based ad-free streaming offering has announced that its mobile app is now compatible with both Apple CarPlay and Android Auto interfaces.
The news triggered strong pre-market buying on Monday of Auddia Inc. stock on the Nasdaq market.
It is a big step forward for faidr, the offering from Auddia Inc. that some radio station owners believe can bring new revenue opportunities — through the deletion of advertising one would hear on its over-the-air signals.
With the dual integrations, users of the faidr app can now have smartphone mirroring of their entertainment options on the in-dash entertainment system of a vehicle equipped with either the iOs or Google-powered systems.
According to Wards Intelligence, upward of 90% of new vehicles as of mid-2023 had either Apple CarPlay or Android Auto.
Auddia also refers to a recent McKinsey & Co. study which shared that in the U.S., 25% of EV buyers and 38% of “combustion car buyers” said they are not interested in purchasing a vehicle if it does not have smartphone mirroring.
Then, there is a RAB study suggesting that AM/FM radio streaming is the “leading choice of consumers” when Apple CarPlay or Android Auto are available to a consumer. However, some 54% of time spent listening is not to AM/FM radio, although it continues to lead in TSL.
Sirius XM captures 19% of time spent listening; music player streaming attracts 18% of TSL.
Until now, faidr use in the car has come via Bluetooth. Auddia CEO Michael Lawless comments, “As we continue to execute our plan of delivering more value to faidr listening this includes integrating faidr into more platforms to give our users more places to enjoy our differentiated listening experiences. This integration into Apple CarPlay and Android Auto gives us far more reach within the US radio streaming space than we had with just our smartphone integration.”
In addition to providing access to Apple CarPlay and Android Auto, Auddia plans to pursue direct integrations into vehicle infotainment systems to access consumers in vehicles not planning to support smartphone mirroring technologies.
Auddia also plans to expand listening options to smart speakers, desktop, home entertainment systems, and other platforms where consumers demonstrate their desire to listen to audio.
Additionally, Auddia said it expects to announce “an AI-assisted music-only AM/FM offering” during the last three months of 2024 “that will give consumers the choice of listening to their favorite stations without ads or DJs, only music.”
Auddia, not to be confused with debtor-in-possession Audacy Inc., saw its stock price torpedo forward as word of the Android Auto and Apple CarPlay integrations became known. In pre-market trading on Monday, “AUUD,” which trades on the Nasdaq, increased by 69% in value to $1.46 — a 60-cent gain that brings the company back into minimum trading compliance rules with the exchange.
