Listnr vs iHeart: The fight for the future of audio
The country’s two top radio companies have diametrically opposed approaches to digital audio: SCA’s homegrown Listnr and ARN’s borrowed iHeart. Both are building momentum, but can both succeed over the long term? The CEOs speak to Mumbrella.
“I think Listnr’s a remarkable story”, John Kelly says of the digital audio platform SCA has built from scratch and brought to profitability in under four years.
As CEO of Southern Cross Austereo, he is pleased about numerous things when he speaks to Mumbrella — not least that SCA can now truthfully be referred to as an ‘audio company’, having finally shed the last of its regional TV assets.
But it is the success of Listnr which Kelly really wants to talk about.
So much spin from Davis, and anyone in the industry or close enough to ARN simply don’t buy it. Nathan, you’re a strong journo – push harder for the truth to be uncovered and stop the BS spin!
Under the current circumstances, I think SCA would be ecstatic that they have a home grown, fully controlled streaming platform, that competes well with the big boys. On the other side of the fence, the slow motion iHeart media trainwreck, must (should) be keeping some awake at night. My suspicion is, that if iHeart is to survive, it’s going to be forced to slash costs and significantly raise licence fees from its ‘partners’. It’s financiers won’t accept ongoing US$1B losses every year, for too long.
Davis’ spin is a bit like being told that renting a house for the rest of your life is a better investment than buying or building.
Looking at this, LiSTNR turns a profit in 4 years, it’s taken ARN 10 years with IHeart, and they still have no asset to show for it.
There will come a time when ARN’s leasing fee will be equivalent or higher than SCA’s capex on owning their own asset. And then the “in hindsight” view will kick in when ARN realise they are now 10 years behind.
In every growth metric, SCA/LiSTNR is already leaving ARN/Iheart behind.
Anyone that has followed the iHeart parent company saga closely, will know their history & current financial situation.
Nuff said on that..
As for LisTNR, I am really impressed that the local platform is doing so well with such a limited Capex/Opex. Kudos to SCA on that front ?
I actually suspect SCAs current share price, and potential sale price, is severely undervaluing this jewel in its portfolio.
98% of ARN and Listnr podcast listening would be via Spotify or Apple Podcasts so in terms of tech and apps what does it really matter?
First up EBITDA is NOT a measure of profitability it is a measure of cashflow
Second, Davis spin is getting tired, old and boring. Licensing agreement v SCA owned asset – no shareholder value from ARN. How much money does he have to lose for Shareholders before the Board moves him on
As has been stated @dataguy, 70% consumption on the platform is live streaming or catchup podcasts.
For a ‘dataguy’ you’re not that great at reading the data that has already already been presented to you!