Eric Boyko, CEO of Stingray, has said his vision is to be the in-car entertainment provider for as many vehicle makers as possible.Andrej Ivanov/The Globe and Mail
Montreal media company Stingray Group Inc. RAY-A-T is buying American live audio streaming specialist TuneIn Holdings Inc. in a deal that bulks up its business in the United States and deepens its push into the auto industry.
Stingray has signed a definitive agreement to purchase San Francisco-based TuneIn for up to US$175-million, according to a news release published Tuesday after markets closed. Stingray will pay US$150-million when the transaction is finalized and up to US$25-million 12 months afterward.
The deal will expand Stingray’s reach by combining its premium music and video content with TuneIn’s robust partnerships with major device manufacturers, automotive companies and content providers, the companies said in a statement. TuneIn currently has some 75 million active listeners each month and provides access to more than 100,000 radio stations, podcasts, music channels and other content.
“It’s the best deal Stingray has done,” the Canadian corporation’s founder and chief executive, Eric Boyko, said in an interview, adding he’s particularly excited about the scale the deal gives his company in the car business. “Now for the first time, we’re really a strong competitor to Sirius XM SIRI-Q.”
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Mr. Boyko has built Stingray, a supplier of programmed music, into one of Canada’s major media corporations, pivoting from a subscription model for cable companies to an ad-supported strategy that’s pumping out tunes on cellphones and TVs, and in retail stores and passenger vehicles. The company is also Canada’s largest radio station operator.
Stingray was able to repurpose its music and video for the manufacturers of televisions themselves. It now supplies content that comes standard on new televisions under the Samsung, Vizio and LG brands – a business that delivers free streaming content to viewers that’s monetized through advertisements.
The company took aim at the retail market in much the same way. It now provides retailers ranging from CVS pharmacies in the U.S. to the Loblaws and Dollarama chains in Canada with programmed music for their stores, supported by ads.
BYD’s in-car karaoke feature is put to the test by a woman at an event in Mexico City in 2024.Toya Sarno Jordan/Reuters
The real prize, however, could be the automobile market. Stingray already supplies cabin karaoke systems for U.S. electric-car pioneer Tesla Inc., as well as Ford Motor Co., Audi AG and China’s BYD Co. Ltd. – it expects to generate roughly $10-million in sales from that business this year.
But its appetite is much bigger. Mr. Boyko has said his vision is to be the in-car entertainment provider for as many vehicle makers as possible, offering not only karaoke, but also Stingray’s stable of curated playlists, as well as radio and podcasts.
Taking over privately held TuneIn is a big step toward that goal, the CEO said. Both companies currently have supply contracts with about 10 auto manufacturers each, but their selling power is much greater combined, he said.
“Us together in the cars, you’re going to have Stingray music, you’re going to have TuneIn radio and you’re going to have our karaoke,” Mr. Boyko said. “You put all three together and you really control the audio.”
Venture Capital firm Innovation Endeavors made a new investment in TuneIn in November, 2020, in a bid to speed up its technology innovation and increase its market share. About a year later, Tom Hanks triggered a surge in U.S. downloads for the TuneIn application when he named it as his go-to app on The Late Show with Stephen Colbert.
Mr. Boyko said some 100 TuneIn employees will likely relocate to Montreal after the deal closes as expected later this year. Their move would come as Quebec tightens its immigration levels: The province set a new target last week of 45,000 new permanent residents annually, a sharp reduction from the 61,000 who are expected in Quebec in 2025.
Editor’s note: A previous headline on this article said the price Stingray would pay for TuneIn is more than $175-million. This headline has been corrected.