Auddia Inc signs a definitive purchase agreement to acquire the AM/FM streaming app Radio FM, noting that closing the acquisition remains subject to financing the acquisition cost. Auddia CEO Michael Lawless says, “We are seeing strong subscription conversion numbers off the faidr free tier which is
solidifying our confidence that a large number of AM/FM streaming listeners are willing to pay a subscription to avoid commercials while listening to their favorite stations. The challenge now becomes how to grow the free tier user base in the most cost-efficient manner possible to increase our pool of potential subscribers. The Radio FM acquisition allows us to acquire 4.6 million retained users at a customer acquisition cost (CAC) that is approximately 70% lower than the cost to acquire a free tier user through our direct marketing methods.”
