Wild Card Wednesday . . .

iHEART’S NATIONAL DEBT:  Here’s a fun factoid to get your day started . . . . iHeart is asking to borrow more money.  This time it’s another $500M, which will buy them about 18 months of operating time at their current net loss level.  They’ll need to pay senior debt holders $8.6M just for permission to borrow another half a billion.  And you thought your bookie was tough!  If iHeart gets approval to borrow the additional money their total leverage will grow to ~$22.5B.  By comparison, if iHeart were its own country this amount would rank their national debt at #72 on the global debt rankings list.  So basically they’ll be in worse shape financially than Cuba!  Does this make Bob Pittman the Fidel Castro of radio?!?  (sorry)  http://www.insideradio.com/free/iheart-requests-debt-load-increase/article_58523ef0-84f5-11e6-85e8-3b0179c5f322.html

iheart-debt

YOUTH MARKETING VIA ENGAGEMENT:  The following is a great showcase article from Mobile Marketer on Pandora’s ability to reach Gen Zers.  In the piece Heidi Browning articulates the importance of engagement as a marketing vehicle to reach youth demos.  The logic trail is sound – Gen Zers and the younger half of Millennials are more cross-connected than ever before.  This interactivity makes them time poor and fragments marketers’ ability to create a brand identity with this group.  The solution is time spent . . . or in another word, engagement.  Marketers can harness the power of publishers who command engagement with younger consumers, and break through the media clutter to effectively story tell and relationship build.  We’ve been beating the engagement drum for a while now, but I’d argue it’s more relevant today than ever before.  http://www.mobilemarketer.com/cms/news/music/23694.html

INSIDE THE MIND OF IOVINE:  I thought I would leave you today with a fascinating Buzzfeed interview featuring Apple Music’s Jimmy Iovine.  It’s a fairly complex piece, so save it for when you have a quiet 15 minutes.  In it, Jimmy touts the accomplishments of Apple Music (of course), but also gets introspective on the challenges.  The most poignant comments are in the middle of the article, when Jimmy discusses the need to appease artists, labels and consumers – not an easy trifecta to solve for.  He also gets real on the issue of exclusives, and what life could be like for Apple Music in a post-exclusive world.  No real sales point to this article, but good to understand the mindset and motivations of a prominent player in the music ecosystem.  https://www.buzzfeed.com/reggieugwu/inside-apple-musics-second-act?utm_term=.mh7KqLzEx#.xc4BV3ayp

Have a great Wednesday guys!

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