Weekend Update

Cumulus to Announce Deal with Online Music Service Rdio Cumulus Media is expected to announce Monday a deal with subscription music service Rdio that will give Cumulus an online outlet and help Rdio compete against more established players like Spotify, according to the New York Times. In exchange for what it calls a significant equity stake in Rdio's parent company, Pulser Media, Cumulus will give Rdio broad access to its programming and promote Rdio on its stations. "This is our digital play," says Cumulus CEO Lew Dickey in a joint NYT interview with Rdio CEO Drew Larner. "Crucially for Rdio, which was introduced in 2010 and has struggled to gain a foothold in the market, Cumulus will also sell advertising for a free version of the service in the United States. Rdio, which costs $5 to $10 a month and is available in 31 markets around the world, lets its subscribers listen to millions of songs, build playlists and interact with other users," writes the Times. “The biggest challenge we face is really awareness," says Larner. "We live in this bubble in which everybody is talking about this stuff constantly, but to the wider world, streaming is still relatively nascent." The deal between Rdio and Cumulus is a trade, with no cash changing hands. Further terms were not disclosed, but the value of Cumulus' content and services is estimated at more than $100 million. Meanwhile, there's speculation that Cumulus will move away from its current deal with Clear Channel's iHeartRadio as Cumulus seeks to become more of a competitor with Clear Channel's Premiere Networks. Of course, Cumulus is acquiring the former Dial Global, renamed WestwoodOne, to expand its Cumulus Media Networks. Rdio is the digital music service founded by the co-creator of Skype.