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A Market Analysis for
iHeartRadio
Gary Mervin
Full Sail University
Project & Portfolio II: Business and Marketing
December 18, 2019
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EXECUTIVE SUMMARY
This is a market analysis for iHeartRadio, an all-in-one streaming radio and digital
streaming service. This report shows the comparison to its competition, the growth of its
services, and capabilities as a leading company. This report would also give an overview of the
company. Based on the recommendations it’ll conclude how iHeartRadio could increase their
revenue and audience by adding new services and expanding internationally.
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OBJECTIVE
The objective of this report is to help iHeartRadio expand their marketing brand and
create new services to benefit new and existing customers. By doing so, it would keep this
company ahead of its competitors.
RESEARCH METHODOLOGY
The information gathered in this report are mostly internal and external from
online sources. I would also share quantitative research. The research was collected during the
month of December 2019. Most of the research are goes as far back as 5 years ago. Some
challenges I encountered was when gathering information, I was getting more podcast since
iHeartRadio is a streaming service.
RESEARCH AND KEY FINDINGS
iHeartRadio is known for its free online streaming services, including radio and digital
music. They have over 1,000 live radio stations of
different genres. iHeartRadio is available on several
platforms, such as online, mobile phones, PlayStation,
smart TVs and etc. Consumers stay connected with the
latest music, news and entertainment. iHeartRadio parent
company, iHeartMedia, “has the largest reach of any
radio or television outlet in America.” (iHeartMedia, n.d.)
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In less than 3 years, iHeartRadio had 50 million registered subscribers, more then their
competitors, Spotify and Pandora. Based on today’s modern technology, iHeartRadio has paved
the way for digital live radio
streaming. Traditional
broadcast radio is becoming
less spoken about due to
new technology advances.
(Popper, 2014) It is known
most new music is
discovered through FM/AM
music compared to digital
services like YouTube,
iTunes and SiriusXM.
iHeartRadio has taken some steps to enhance some of the features. One feature that has
been overlooked due to the live radio stations success is the podcasts. “Nielson estimates 93% of
adults listen to the radio, while Edison Research estimates only 24% listens to podcasts every
month.” (Dudley, 2019) There was a change in the process of delivering an old service to new
target audience. A podcast recommendation engine launched for iOS and Android users that help
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iHeartRadio get potential subscribers.
CONCLUSIONS
iHeartRadio is doing a good job at marketing and staying ahead of their competitors.
They have unassailable features that set them apart from other digital streaming services. It’s
great to enhance the services already in place but it’s beneficial to add news services as well.
Being able to set the tone for a digital platform, was big for iHeartRadio. Even though podcasts
were not getting as much attention as the live radio stations, iHeartRadio stepped back and
handled the situation accordingly. Due to that evaluation, they were able to be successful in that
area as well.
RECOMMENDATIONS
One of the main things iHeartRadio should focus on is expanding their marketing to more
international countries. Having their company available in other countries gives subscribers great
services and entertainment. The iHeart brand would be a greater brand across all nations. That
way the vision of the company could impact those in need of a different digital asset in their
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lives. Being able to reach those individuals could open a different mindset of digital experiences
like it did to subscribers in the United States.
iHeartRadio should also focus on adding new services to their company. Based on the
constant change of technology, it’s best to stay ahead of the competition and think outside the
box when it comes to evolving as a company. Everybody likes something new, trendy and
beneficial. Just by adding new services it could bring on new consumers and also keep the
existing ones. That means the revenue would grow to new heights and will open the doors to
expand.
These recommendations are strategic in order for iHeart to remain a top digital streaming
service. There are always room to grow and expand as things become outdated, the audience
demand new features, or a new group of subscribers are added to the audience.
In the future, it would be beneficial to send out surveys to track what the audience like,
dislike, increase, decrease or add. Who knows best than the people that are subscribed to the
service? Being able to gather that information could give iHeartRadio ideas of what to change or
what to add on. This would show the intended audience how important they are to the company
by being able to voice their honest opinion.
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REFERENCES
BBVA launches podcast channel to broaden the reach of its owned content. (n.d.). Retrieved
from BBVA: https://www.bbva.com/en/bbva-launches-podcast-channel-broaden-reach-
its-owned-content/
Dudley, J. (2019, February 11). iHeartRadio Looks To Grow The Podcast Audience With
Personalized Podcast Recommendations. Retrieved from Forbes:
https://www.forbes.com/sites/joshuadudley/2019/02/11/iheartradio-looks-to-grow-the-
podcast-audience-with-personalized-podcast-recommendations/#4b7361d86f1c
iHeartMedia. (n.d.). Retrieved from iHeartMedia:
https://www.iheartmedia.com/iheartmedia/index
Petronzio, M. (2014, March 27). Radio Is Still the Most Popular Way to Find New Music, Study
Says. Retrieved from Mashable: https://mashable.com/2014/03/27/radio-new-music-
chart/
Popper, B. (2014, June 17). iHeartRadio is the fastest growing music service no one is talking
about . Retrieved from The Verge:
https://www.theverge.com/2014/6/17/5817132/iheartradio-hits-50-million-registered-
users
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Press, A. (2019, January 14). iHeartRadio Launches a Broadway Channel and Digital Hub.
Retrieved from Billboard:
https://www.billboard.com/articles/business/8493298/iheartradio-launches-broadway-
channel-digital-hub
