Details On Sprint's FM Chip Activation Agreement Revealed
February 4, 2013
More details have emerged on Sprint's recent announcement that it would be activating FM chips in its mobile devices. Radio World reports that Emmis, which made the announcement of the Sprint deal, has been securing commitments from other radio groups.
Sprint has agreed to embed and activate FM tuners in approximately 30 million of its mobile phones over three years in exchange for a reported 30 percent of the business from "interactive" advertising or activity based on Emmisí NextRadio tuner app.
Emmis CEO Jeff Smulyan has told Radio World that the agreement calls for Sprint to produce "a minimum" of 30 million phones; in exchange for $15 million worth of station ad inventory from broadcasters over each of the next three years. Sprint would also receive 30 percent of each piece of interactive ad business under the agreement. Smulyan says the $15 million would be paid out in quarterly installments, and there will also be an agreement in place as to how many FM-activated phones will be shipped by Sprint each quarter.
Smulyan says that he has received "overwhelmingly positive" feedback from other radio ownership groups about the plan. Emmis hopes to have its NextRadio tuner app completed by next summer.