RAY acquires 30% of The Podcast Exchange Stingray Group Inc. has acquired a 30% interest in The Podcast Exchange (TPX), the Canadian leader in podcast advertising representing thousands of shows with over 70 million impressions per month across multiple genres and networks. This transaction will give Stingray a head start in podcast digital ad revenue and support the company's growth in the key 18 to 34 demographic.
According to estimates by the interactive advertising bureau and PricewaterhouseCoopers, advertisers likely spent close to $700-million on podcasts in 2019, a nearly seven-fold increase. Stingray will hit the ground running, instantly benefiting from TPX's partnerships, proprietary research, and brand equity with Canadian agencies and advertisers.
TPX's network approach to podcasting is not contingent on a one-hit or two-hits model to drive ad revenue, but rather offers important potential for return through scale and flexibility. This investment will also give Stingray a platform to test owned and operated podcasts, and take advantage of the existing TPX ecosystem to drive listenership of Stingray products and services.
"Stingray's investment in The Podcast Exchange will provide Stingray and Stingray Radio with a toehold in the fast-growing ad-supported podcast market, thus supplementing our radio and digital audio products," said Eric Boyko, president, co-founder and chief executive officer of Stingray. "This strategic investment is a bold move to show our continued commitment to deliver new and innovative content to Canadian consumers and brands. Having the means to deliver music, radio and podcasts to listeners will pave the way for Stingray's market position as Canada's only true 'audio everywhere' provider."
Jean-Marie Heimrath, president and CEO of TPX, added, "This strategic investment will support TPX growth plans in media sales, and launch our content production and consulting offerings in 2020."
About Stingray Group Inc.
Montreal-based Stingray is a leading music, media and technology company with over 1,200 employees worldwide.