Apple Inc. (NASDAQ:AAPL) earlier inked a pact with National Public Radio, or NPR, to add a news channel to the highly popular iTunes Radio service. Today, the NPR channel will open as the first streaming news channel on the audio program, spearheading a bold push to bring numerous news services both national and local to the Cupertino firm’s latest iTunes service. NPR will operate live 24 hours per day, according to the announcement, and will also broadcast at least a few of its flagship shows such as “All Things Considered.”
Drawing on a report from Re/Code, this initial rollout should be followed by the introduction of a number of local NPR stations before the end of April. These iTunes Radio feeds will feature a combination of live broadcasting and recorded news shows. NPR already attracts some 30 million online listeners as it is, and since iTunes Radio is the nation’s third largest audio streaming service with 20 million listeners, that number may soon exceed 40 million or even 50 million. Though NPR seeks maximum exposure, Apple’s (AAPL) interest in the deal is less clear, since National Public Radio is a nonprofit which will not be a direct source of revenue.
The move seems likely to be an attempt to draw some of the 30 million NPR listeners into use of iTunes Radio. Apple Inc.’s (AAPL) executives likely hope that a certain percentage of these newcomers will then purchase music and other paid services once NPR’s free programs have lured them in. In short, the idea is probably to increase the number of people in Apple’s overall ecosystem, based on the notion that some seeking free content will come across something that they want to purchase instead.
NPR is also planning to release a smartphone app, which will provide location-based content. However, the app will also incorporate robust algorithms that will detect a user’s preferences and switch to the nearest channel that matches these as well. It is still unclear if this idea will be used for iTunes Radio, but it is a good fit for Apple’s business model and would be ideally suited to appear as a free download on the Apple Store.
Other news services are likely to follow, possibly featuring their own apps to ensure delivery of localized content to users who want it. Whether these audio streams will be free or paid remains to be seen. However, the plan reveals Apple Inc.’s (AAPL) determination to leave no stone unturned in their effort to gain relevance in practically every corner of the media world, likely on the assumption that the further they cast their nets, the more likely they are to stumble on a windfall of as yet untapped profits.
