More details have emerged about Sprint’s deal with broadcasters to include FM receiver functionality in some of its mobile devices. In simple terms, broadcasters have cobbled together a package of subsidies to the nation’s #3 wireless carrier in order to buy access to that market.
Sprint will enable FM radio reception capability in at least 30 million phones over the next three years, using Emmis Communication’s NextRadio app as the interface.
In exchange, broadcasters will pay Sprint 30% of any "interactive" advertising revenue generated via the app on those phones. Emmis sweetened the deal by pledging Sprint $45 million in advertising inventory over three years ($15 million per year, allocated quarterly).