Auddia Announces New B2B Business Model with Strategic Shift to AI Driven Music Discovery

Rhea-AI Summary

Auddia (NASDAQ:AUUD) announced a strategic pivot from B2C to B2B with its new Discovr Radio platform. The company will transform its faidr app, making AI-driven ad-free AM/FM streaming free for consumers while monetizing through artists and labels seeking radio exposure.

The new platform features an AI Placement Engine that strategically inserts artists' music into radio feeds, targeting up to 33% of stream content. Artists will gain access to an Artist Portal providing analytics on plays, listener engagement, and demographic data. The platform will be available through a monthly subscription model for artists and labels, with an MVP version expected by Q1 2026.

Positive

• Strategic shift to B2B model opens access to larger addressable market of over 100 million prospects
• New revenue stream through artist and label subscriptions
• AI-driven placement technology ensures targeted music discovery
• Platform expansion potential to other radio streaming apps beyond faidr

Negative

• Elimination of consumer subscription revenue stream
• Delayed MVP launch timeline extending to Q1 2026
• Success dependent on artist and label adoption
• Requires building new sales channels and relationships in music industry

Auddia shifts business model from B2C to B2B, targeting artists and labels for SaaS access to ad-free AM/FM streaming listeners

faidr users will enjoy free access to AI driven ad-free AM/FM streams on all music stations

Music from new artists and deep tracks from established artists are expected to occupy up to 33% of stream content on average

BOULDER, Colo., Aug. 20, 2025 (GLOBE NEWSWIRE) -- Auddia Inc. (NASDAQ:AUUD) (NASDAQ:AUUDW) (“Auddia” or the “Company”), an AI first technology company that has built a proprietary AI platform for audio identification and classification to reinvent how consumers engage with audio, today announced a strategic shift for faidr, the Company’s AI driven ad-free AM/FM streaming and podcast listening app.

Whereas faidr users currently need to subscribe to enjoy the benefits of the Company’s AI technology that automatically identifies ad breaks so they can be removed from the listening experience, Auddia will be making all premium AI features free to consumers. Instead of monetizing consumers, the Company will be monetizing artists who want to put their music in front of mainstream AM/FM streaming audiences.

“Since running a pilot of our Discovr Program, where we sourced a handful of new artists and inserted them into radio feeds, we’ve been looking for more ways to connect artists with new fans,” said Theo Romeo, Auddia’s CMO. “Radio continues to be the perfect mechanism to break new artists, but radio tends only to play bands or tracks that have already gained the requisite popularity. New music platforms like Bandcamp and SoundCloud are integral tools for artists to connect with new fans and even monetize their content, but those platforms only cater to a subset of the total addressable market for an artist. The largest group of potential fans remains on radio, listening to music passively, not searching for new artists, even though they are chomping at the bit to hear new, exciting music based on our surveys and research. Our new Discovr Radio platform will deliver this experience.”

Unlike other new music discovery platforms, which allow artists to upload songs in the hopes that new listeners will find them among the other songs available, Discovr Radio delivers guaranteed plays to artists, leveraging AI to place their songs into radio feeds as part of a custom programming experience and as unique content during what would typically be an ad break. This gives artists opportunities to be heard by the many millions of streaming radio listeners worldwide.

The new Discovr Radio platform will consist of a new AI Placement Engine and Artist Portal. The AI Placement Engine will aim to put the right new song in front of the right listener, on the right station, adjacent to the right artist, to optimize music discovery and the connection between artists and fans. The Artist Portal will give artists performance analytics on number of total plays, likes and dislikes, demographic data, and facilitate the connection of artists to their new fans. In addition to streaming songs on live radio streams, the Discovr Radio offering will eventually allow artists and labels to launch campaigns on streaming apps to promote new songs, albums, and tours.

Auddia is evolving its business model from direct-to-consumer to business-to-business, shifting its focus from individual radio-streaming subscribers to artists and labels. Through a modest monthly subscription, these partners gain guaranteed radio plays—offering a new channel for music promotion.

“We’re able to reach and engage artists and labels with far greater precision,” said Theo Romeo, Auddia’s CMO. “Our internal research shows a serviceable addressable market of over 100 million prospects. We see Discovr as an accessible, high-impact tool that complements the broader ecosystem of artist promotion—from social media and digital platforms to traditional industry channels.”

The Auddia team expects to release an MVP version of the Discovr Radio platform before the end of the year or Q1 of 2026. The MVP is expected to be supported by a pilot program of participating labels and distributors.

Although faidr will be the first audio app integrated into the Discovr Radio platform, the company is planning to open the platform to other radio streaming apps in the future. Upon the launch of Discovr Radio, faidr users will have the ability to like and dislike songs in real time as well as visit artist pages in the app, which provide links to listen to songs, purchase albums, tickets, merchandise, and follow the artist on social media.

About Auddia Inc.

Auddia, through its proprietary AI platform for audio identification and classification, is reinventing how consumers engage with AM/FM radio, podcasts, and other audio content. Auddia’s flagship audio superapp, called faidr, brings multiple industry firsts to the audio streaming landscape that include:

• subscription based, ad free listening on any AM/FM radio station
• content skipping across any AM/FM station
• one touch skipping of entire podcast ad breaks
• subscription based, ad free listening to podcast partners

faidr also delivers exclusive content and playlists, and showcases exciting new artists, hand-picked by curators and DJs. For more information, visit: www.auddia.com

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 about the Company's current expectations about future results, performance, prospects and opportunities. Statements that are not historical facts, such as "anticipates," "believes" and "expects" or similar expressions, are forward-looking statements. These forward-looking statements are based on the current plans and expectations of management and are subject to a number of uncertainties and risks that could significantly affect the Company's current plans and expectations, as well as future results of operations and financial condition. These and other risks and uncertainties are discussed more fully in our filings with the Securities and Exchange Commission. Readers are encouraged to review the section titled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, as well as other disclosures contained in the Annual Report and subsequent filings made with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date and the Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Investor Relations:
Kirin Smith, President
PCG Advisory, Inc.
ksmith@pcgadvisory.com
www.pcgadvisory.com

FAQ

What is Auddia's new Discovr Radio platform?

Discovr Radio is a B2B platform that allows artists and labels to get guaranteed radio plays through AI-driven placement in AM/FM streams, with up to 33% of stream content dedicated to new and deep-track music.

How will AUUD's business model change affect revenue?

Auddia is shifting from consumer subscriptions to B2B revenue, monetizing through monthly subscriptions from artists and labels seeking radio exposure, targeting a market of over 100 million prospects.

When will Auddia launch its new Discovr Radio platform?

Auddia plans to release an MVP version of the Discovr Radio platform by the end of 2025 or Q1 2026, starting with a pilot program involving participating labels and distributors.

What features does Auddia's Artist Portal include?

The Artist Portal provides artists with performance analytics including total plays, likes/dislikes, demographic data, and tools to connect with new fans. It also facilitates promotion of songs, albums, and tours.

How will AUUD's faidr app change under the new model?

Faidr will become free for consumers, offering AI-driven ad-free AM/FM streaming. Users can like/dislike songs in real-time and access artist pages with links to purchase music, tickets, and merchandise.