Clear Channel to delay inserting ads into iHeart

Mar 28, 2012 By RYAN NAKASHIMA , AP Business Writer

(AP) -- Clear Channel CEO Bob Pittman says that the radio company will keep part of its iHeart Radio online service ad-free for at least a few more months, explaining that a consumer backlash against ads on Pandora Media Inc.'s competing service serves as a "cautionary tale."

Pittman told The Associated Press that negative listener reaction to Pandora's in-stream ads has convinced Clear Channel that they are disruptive and annoying.

"There are a lot of about in-stream ads," Pittman said in an interview.

"When you're in your music collection, you want to escape from the world. It's a completely different experience" from , he said.

In November, Clear Channel said iHeart Radio would be free of ads through April 1, but Pittman said this week that the company would push back the introduction of ads in the custom section of its music until it figures out a way to make them more "compatible" with the user experience.

is abuzz with comments from people who detest the ads on Pandora. Some tweeters described the ads as mood-killers that made them want to stop listening.

Pandora declined to comment.

Since its debut as a public company in June, Pandora has been under pressure to boost the revenue it gets from ads. The company's ad revenue doubled in the year through January and pared its losses, but its stock was trading just above $10 on Wednesday, nearly 38 percent below its $16 IPO price.

Explore further: Yahoo, pay-TV operators among Hulu bidders

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Clear Channel swipes at Pandora with iheart revamp

Jul 11, 2011

(AP) -- Radio station giant Clear Channel Communications Inc. is taking a swipe at online music service Pandora with a revamp of its iheartradio application that imitates Pandora's personalized listening experience but doesn't ...

Pandora hopes IPO will raise $123 million

Jun 03, 2011

Pandora Media Inc., which announced plans earlier this year to sell its stock in an initial public offering, said it and its investors were seeking to raise as much as $123 million - an amount that would value the Internet ...

Pandora raises IPO offering price range

Jun 10, 2011

(AP) -- The popular Internet radio service Pandora raised the price range of its initial public offering on Friday by at least a third to between $10 and $12

Pandora net loss widens but revenue up sharply

Aug 26, 2011

Internet radio company Pandora on Thursday posted its first quarterly earnings since going public, reporting a wider net loss but revenue that more than doubled on solid advertising growth.

Pandora sings happy tune: IPO fetches $16 a share

Jun 15, 2011

(AP) -- Pandora Media Inc. sold its initial public offering of stock at $16 per share late Tuesday, fetching twice as much as the popular but unprofitable Internet radio service expected less than two weeks ago.

Recommended for you

Yahoo, pay-TV operators among Hulu bidders

20 hours ago

Online video site Hulu is again up for sale, with Yahoo and pay TV operators DirecTV and Time Warner Cable among the seven bidders, according to a person with direct knowledge of the matter.

US panel rejects Motorola bid to block Xbox imports

May 24, 2013

The US International Trade Commission sided with Microsoft in a patent dispute with Google-owned Motorola Mobility that could have led to Xbox 360 videogame consoles being banned from import.

User comments : 0

More news stories

Yahoo, pay-TV operators among Hulu bidders

Online video site Hulu is again up for sale, with Yahoo and pay TV operators DirecTV and Time Warner Cable among the seven bidders, according to a person with direct knowledge of the matter.

Radiation leak at Japan lab; small impact expected

An atomic research lab in northern Japan has reported a radiation leak that may have affected about 50 people, though none were hospitalized and no impact was expected outside the facility, the lab's operator ...