Clear Channel Radio snaps up struggling service.
It will use the core tech behind the service to add new functionality to its digital radio output, rather than build out the subscription service.
Robert Pittman, chairman of media and entertainment platforms for Clear Channel, said, “The acquisition is a key element in our aggressive digital strategy.
"It will capitalise on our powerful iHeartRadio platform and ensure that our listeners have the radio and music experience they want, on whatever device or platform they prefer.”
In other words, this is a move designed to move Clear Channel close to Pandora et al, rather than music streaming firms like Spotify and Napster.
Over the coming months, Clear Channel will incorporate Thumbplay’s custom ‘radio station’ service into its iHeartRadio digital platform for 750 radio stations nationwide.
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The technology works on PCs, Macs, Android, iPhone and BlackBerry devices. It will be incorporated into Toyota vehicles as well as other automotive platforms.
The sell-off ends a brave attempt by the US firm to diversify away from the ringtones/personalisation business that made its fortune.
At one point the US firm grossed more than $100 million a year selling ringtones, but by 2008 the sector was in free-fall, battered by litigation from disgruntled consumers, the ability to self-configure ringtones, the rise of apps and more.
It chose to move into music subs, but came up against royalty issues and a basic lack of consumer interest. It's been reported the service had 20,000 subscribers paying $10 a month for unlimited music.
The same reports suggest Thumbplay will also sell what remains of its ringtone business in a separate deal.
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