Entercom Purchases 45% Stake In DGital Media
Entercom has announced that it has purchased a 45% stake in podcast/on-demand audio producer DGital Media.
No financial information was announced as the deal will include a strategic partnership between the two companies. Entercom will give DGital Media marketing and promotional support on its radio stations, while DGital will work with Entercom to create on-demand content from Entercom’s local radio talent and existing business partnerships. Between the Dgital Media investment and the Play.It network Entercom will acquire as part of its acquisition of CBS Radio the two moves will give the company a large stake in the podcasting business.
Among the shows that DGital Media owns or produces are Pod Save America, Tony Kornheiser Show, Ed Schultz, MMQB with Peter King, and UFC Unfiltered. Among the other companies the network works with are Fox Sports, Sports Illustrated, ReCode, USA Today, Vox Media, Yahoo! Sports.
Entercom Communications Corp., the fourth-largest radio broadcasting company in the U.S., and DGital Media Inc., a leading creator of premium, personality-based podcasts and other on-demand audio content, today announced an investment and strategic partnership. Under the terms of the agreement, Entercom purchased a 45 percent stake in DGital Media.
In addition to the investment, Entercom will provide DGital Media with significant annual marketing and promotional support across its nationwide broadcast radio platform, including 126 top rated radio stations in 28 markets coast to coast. Furthermore, Entercom and DGital Media entered into a multi-year services agreement under which DGital Media will dedicate significant resources to create world-class, original on-demand audio content leveraging Entercom’s deep roster of local talent and relationships in the world of sports, news, politics, music, comedy, and technology. DGital Media will also serve as Entercom’s exclusive third-party ad sales representative for all of its podcasts and other on-demand audio.
Podcast consumption continues to grow rapidly in the U.S., and according to The Infinite Dial from Edison Research, 67 million Americans or 24 percent of people ages 12 and up listened to a podcast in the past month. According to a new report from the IAB, in partnership with PricewaterhouseCoopers US, podcast ad revenue has grown by 85 percent this year and is on track to reach more than $220 million in 2017.
“We are delighted to enter into this important relationship with DGital Media that enables us to partner with the premier on-demand audio content company in the U.S. and will scale our capabilities in this rapidly growing space,” said David Field, President and Chief Executive Officer, Entercom. “Upon close of our CBS Radio merger, Entercom will be the clear leader in creating original audio content and we are committed to reaching our listeners in any way they wish to engage with us, whether through live over-the-air broadcasts, streaming audio, on-demand audio or in-person events and experiences. DGital Media has an impressive track record of developing and producing podcasts and growing audiences for their content partners. This partnership will strategically enhance our ability to deliver compelling audio to the public, wherever and whenever they please.”
“We see Entercom as the perfect catalyst for the next phase of our growth,” said Spencer Brown, Chief Executive Officer, DGital Media. “As the leading creator of live, original audio content in sports, news, and music, Entercom offers DGital Media access to a national audio platform that will accelerate the development of our audience engagement efforts. This strategic investment helps us extend the reach of our partners and build their audiences across the audio landscape.”
Richard A. Foreman Associates, Inc. acted as a financial adviser to DGital Media for this transaction.