We know that in-car radio has historically been a key source of music discovery. And we also know that rideshare services (Uber and Lyft included) are very-popular ways to get around cities. Startup Steereo is bringing those two ideas together, with a music-promotion service based around paying drivers to play new music to their passengers.
“Steereo replicates the radio experience in rideshares. We track rider interactions to provide insights into how they are listening to your music,” explains its website, promising an audience of “new and engaged fans, travelling to and from destinations, listening for an average of 15 minutes”.
For artists and labels, it costs a one-time fee of $12.99 to sign up, then campaigns cost $0.005 per minute, currently running in New York, Los Angeles and Austin, Texas. The kicker: “Steereo plays are considered paid advertisement and promotion, therefore are not counted towards royalties”.
Variety has a few more details on how the business model operates: Steereo currently works with around 15,000 drivers, who get a 60% cut of the money paid for campaigns.