Is Audacy Planning An Ad-Free Subscription Streaming Tier?

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From the recently launched faidr app to the iHeartRadio streaming platform, asking consumers of AM and FM radio to pony up a few dollars each month in order to avoid listening to commercials isn’t a novel idea.


That said, Audacy Corp. is presently asking users of its eponymous streaming app specific questions as to how much they’d be willing to pay for commercial free news, sports and music on Audacy-owned stations.

A “Commercial-Free Radio Pricing Survey” — for a single station — recently started to appear on the Audacy app.

“In a commercial free setting, paid advertisements from third parties would be replaced with relevant and potentially exclusive content like additional news, interviews or songs — all while remaining in sync with the live broadcast.”

That’s intriguing, only because iHeartRadio presently offers such an audio opportunity for those who use its app for free. And, the questionnaire comes after the recent widespread launch of the faidr app, which includes stations from publicly traded owners such as Beasley Media Group in addition to those from independent groups including American General Media. After a 30-day no-cost trial, a $5.99 monthly fee brings ad-free programming including “premium music,” exclusive content including shows and mixes still in development, full listening control, forthcoming podcasts and “free comedy and shortcasts.”

In the case of Audacy, the company’s Chief Digital Officer and President, Podcast & Streaming— J.D. Crowley—clearly seeks to understand the value a paid ad-free commercial tier represents to its listeners.

What’s strikingly different from what iHeartRadio or faidr offers is a potential subscription package for one Audacy station.

An a la carte ad-free payment option is unique. And, Audacy is suggesting costs that could be eye-popping for some.

Its first question in the survey appears as follows:

Indeed, Audacy is seeking input on whether one would pay up to $11 for commercial-free enjoyment of a single Audacy Corp. radio station.

The next question reads, “At what price would you begin to think commercial-free radio on your favorite station is getting expensive, but you still might consider it?”

The same pricing options as in question 1 are presented as choices.

Question three, also with the same pricing options offered as answers, states, “At what price would you begin to think commercial-free on your radio is too expensive to consider?”

Then, again with the same pricing options listed as answers, question four from Audacy asks, “At what price would you begin to think a commercial-free radio on your favorite station is priced too low and you would expect that the quality/service couldn’t be very good?”

The very wording of that question sends the message that Audacy is indeed willing to offer individual station ad-free subscriptions at a price that could very well be upward of $5, given the range presented.

Lastly, survey takers are asked to answer the following question, with suggested answers:

The answer to this question is perhaps vitally important to how Audacy proceeds — if at all.

An Audacy Corp. spokesperson declined to comment when contacted by RBR+TVBR.

However, a source close to the matter said the company is “always testing consumer appetites for various offerings, so it would be unwise to read into anything we do. We’ve done this regularly for years.”

Still, it would be difficult not to read into the user survey, in particular at a time when Audacy is selling non-essential radio stations including “Star 102.5” in Buffalo and “The Wolf 94.1” in Memphis, selling real estate in North Las Vegas that has been the home of radio towers for AM radio stations, and engaging in other land divestments to help raise cash. With shareholders scheduled to decide at the company’s annual shareholders’ meeting whether to approve a reverse stock split of an undetermined ratio in order to maintain NYSE compliance, any way to grow revenue seems plausible.

As of 10:45am Eastern on Tuesday, AUD was priced at $0.1269. And, based on ad trends shared by PQ Media, radio advertising is still in “comeback” mode from COVID-19 pandemic punches that drained ad dollars in the second half of 2020. While broadcast TV and digital media saw a swift end-of-2020 rebound, it has been slower for Radio. Audacy, in particular, has been in despacito mode for nearly 2 1/2 years, given its outsized Automotive category exposure compared to its peers.

Meanwhile, multiple ad trend surveys point to digital media’s continued growth against linear media. Does the Audacy survey suggest its digital ad dollar growth isn’t as strong as it once was? Or, does it simply offer another dollar magnet to go with programmatic advertising opportunities?

The latter seems the most logical route for a company faced with challenges and questions, the newest of which involve a possible pay-per-station ad-free streaming option.

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