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
Nielsen Insights: Their Generation
NAB Statement on Court Ruling on Media Ownership Rules
Republic Records Celebrate DNCE Going Double Platinum
May 24, 2016
iHeartMedia Wins Legal Battle
Spotify's Losses Increase As Revenues Grow Faster
Pierre Bouvard: The TV Upfront: History, 2016 issues, and What It Means For Radio
United Stations Adds Sammy Hagar's Radio Show
May 23, 2016
Columbia Records Announces Jennifer Frommer As Head of Its Creative Agency
iHeartRadio Summer Pool Party Heats Up Miami
National Radio Hall of Fame Announces 2016 Nominees
Shelley Wade Named Afternoon Host at KMYI (Star 94.1)/San Diego
Spotify's Family Plan Gets An Upgrade
May 20, 2016
eQB NOW
May 19, 2016
Republic Records Promotes David "Davey Dee" Ingenloff to SVP/Rhythm Crossover Promotion
WLLD (WiLD 94.1)/Tampa Goes Nuts In PM Drive & Grabs A Franchize At Night
Mike Mathewson Named VP/Marketing For Columbia Records
Universal Music Forms Verve Label Group, Appoints Danny Bennett as President/CEO
Entravision Promotes Don Daboub To EVP/Integrated Marketing Solutions
May 18, 2016
Rare On-Air Opening At Power 106 Los Angeles
Ross Mahoney Named PD/PM Drive Host At KXTE/Las Vegas
Erika Alfredson Named VP/Marketing For Columbia Records
May 17, 2016
SBS Reports First Quarter Results
Westwood One Backstage At the BBMAs To Feature Exclusive Content And Pop Trio Bahari
In Brief - May 17, 2016
Music News
The Weeknd Tops Billboard Music Award Winners
Quick Hits: Teen Choice Awards, Bon Jovi, The Killers
Quick Hits: Eminem, Mariah Carey, Red Nose Day TV Special, My Morning Jacket, The Tragically Hip
Drake Stays at #1, Meghan Trainor Debuts at #3 on Billboard 200
Quick Hits: Red Hot Chili Peppers, Megadeth, Ramones
Drake Leads Nominees For 2016 BET Awards
Quick Hits: Adele, Fifth Harmony, Life is Beautiful festival, Beastie Boys
Quick Hits: Chevelle, Rage Against The Machine / Prophets of Rage, 3 Doors Down, Make America Rock Again tour
Ariana Grande, Calvin Harris & More Headlining Billboard Hot 100 Festival
Quick Hits: MuchMusic Awards, Guns N' Roses / Lenny Kravitz / Alice in Chains, Rage Against The Machine, Riot Fest
Puff Daddy Takes Bad Boy Reunion on the Road
Quick Hits: Justin Timberlake, Houston Open Air, The Temper Trap, High Elevation Rock Festival, Pilgrimage Music & Cultural Festival, Lou Reed
Drake Stays Atop Billboard 200, Radiohead Debut at #3
Quick Hits: Adele, Red Hot Chili Peppers, Sia, Oasis
Ozzfest and Knotfest Combine Forces
FMQB NOW

John Mayer
PD, WFLZ/Tampa

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!