Wharton Business School Asks If Podcasting Can Make Money
July 15, 2005

Over the last twelve months, FMQB has twice examined podcasting.  We first introduced the concept last fall, talking with Adam Curry about his ideas and how the concept works.  More recently, we reviewed the state of the technology, looking back over the first part of 2005, while also keeping an eye on the future.  As podcasting continues to grow and make headlines, it is only natural that the academic world would weigh in on the topic.  Enter The Wharton School Of Business at the University Of Pennsylvania.

In an article released this week titled "Podcasting: Can This New Medium Make Money?," the renouned staff at Wharton took a close look at podcasting, moving from an overview of the technology through the business possibilities and into prognastications for the future.  Wharton marketing professor Peter Fader opens the dialogue, saying, "A lot of the attention has been overdone, but podcasting is not going away.  It will continue to grow and resources will be thrown at it. Some will do podcasting well and be rewarded for it."  Wharton legal studies and business ethics professor Kevin Werbach then lends his opinion. He agrees that the technology is more than a fad, but also admits the ultimate effect on listening habits is still unsure. "Podcasting is a nice way to package up spoken audio content the way MP3s have already packaged up music," says Werbach.  "For people listening to the radio or music on the go, it will increase the amount of non-music content they hear, but it won't dramatically change listening patterns."

The real question in the article is not where podcasting will end up, but instead if there is money to be made.  The article makes two points that attempt to answer that question.  First, (as FMQB also pointed out) podcasting is simply another form of narrowcasting and as a result, there is a built in niche audience which could prove valuable.  Second, the writers touch on the idea of time-shifting, saying that that feature could be the most compelling aspect of the technology.  Both of these thoughts seem to set up a viable market.

With the stage set, the article moves into the current state of the business of podcasting, looking at Apple's recent integration of the technology into iTunes and the probable competition from Microsoft and RealNetworks.  The writer also touches on the business models that are currently available:  aggregation, subscriptions, advertising, a model labeled "transparent advertising" (i.e. sponsorship), and a hybrid or combination of several of these.

The article closes by leaving the future fairly wide open but mentions the radio and record industries as examples.  In contrast to what many insiders believe today, it claims that broadcast radio is "under siege from the iPod, podcasting and satellite radio" and says that "the industry will have to respond somehow."  A close look at the number of radio companies that are already podcasting suggests that the industry is being more proactive (and helping to advance the medium in the process) than reactive.  The writer also indicates that music labels are at risk, saying "If music labels don't license their content, they lose a viable distribution channel and ultimately get usurped by sites like Garageband.com."

For the full text of this and similar articles, visit the Knowledge @ Wharton Web site.




 
Breaking News
Study: Women to Radio: I Love You, But….
iHeartMedia Fort Myers Adds New Nighttime On-Air Hosts Lulu & Lala On Y100.1
Entercom Los Angeles Extends KSWD's "Uncle Joe'Benson
February 16, 2017
Study: Who Do Women Love Most – Radio or Pandora?
Prince Streaming Activity Explodes
Kathy Romano To Bring "Her Story" To WBEN/Phiadelphia
February 15, 2017
CBS Corp Revenue Up in 2016, Radio Now "Discontinued Operations"
Z90 "EPIC 48 2.0" Wraps, Includes Meeting Lady Gaga At The Big Game
MIW Radio Group: 2016 Gender Analysis
February 14, 2017
BuzzAngle Music: 2017 GRAMMYs Impact
Universal Music Publishing Group Appoints Walter Jones VP/Creative
The Conclave To Honor John Gehron With Rockwell Award
Report: Millennials Don't Hate Radio
Bob Garrett Memorial Fund
February 13, 2017
Adele Dominates 59th Annual Grammy Awards
Todd "Carson" Zarnitz Named PM Drive Host for KKRZ/Portland & KPWK/Seattle
UMG Relaunches Polygram Entertainment
WRVW/Nashville To Present “Live. Life. Love: A Concert for Suicide Prevention”
CMG Miami Names Michael Baisden Afternoon Drive Host At WHQT
February 10, 2017
Nielsen Reports Increased Revenue in 2016, Q4
Pandora Revenue and Net Losses Both Up in Q4, 2016 Full Year Report
February 9, 2017
CBS Radio Chicago Names Greg Solk OM/PD At WXRT & WJMK
PodcastOne Announces Results of Brand Lift Studies Conducted by Edison Research
Study: "What Women Want 2017" Set To Roll Out Next Week
Music News
James Brown's Drummer Clyde Stubblefield Dies
Republic Records, ZXL Music & The Grimmie Family To Release New Christine Grimmie Music
Linkin Park Announce New Album, Release Single "Heavy"
Migos Joins With Motown & Capitol Records
Quick Hits: Beyonce, Adele, Metallica, Michael Jackson, OneRepublic
Katy Perry, Ed Sheeran, The Chainsmokers, Shawn Mendes, Noah Cyrus, Bruno Mars Set To Perform At The 2017 iHeartRadio Music Awards
Future Announces New Album Out Friday
Quick Hits: Pitbull, Lorde, G-Eazy, Camila Cabello
Quick Hits: Katy Perry, The Chainsmokers, Chance The Rapper
Prince's Early Catalog Comes to Streaming Services
Metallica Announces WorldWired Tour
Quick Hits: DJ Khaled / Beyoncé / Jay Z, Al Jarreau, WayHome Festival
Katy Perry Releases New Single "Chained to the Rhythm"
UMG to Manage Much of Prince's Recording Catalog
Quick Hits: Jack Johnson, Aretha Franklin
FMQB NOW

Question Of
The Week

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!