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
Report: Ron Fair Departs Virgin Records
Adobe, Nielsen To Create Comprehensive Measurement Platform For Digital Content
DMR/Interactive Names Doug Smith VP/Marketing Strategy
Triton Digital's August 2014 Ranker: Major News Events Show Impact On Top 20 Streaming Audio Markets
October 20, 2014
iHeartMedia San Francisco Names Mark Adams PD of KYLD & KIOI
Premiere Networks Promotes Claudine Cazian To VP/Programming & Branded Entertainment
Entercom Names Carlos Lamadrid VP/National Sales, Strategic Partnerships
Pandora Hires Steve Bené As General Counsel
In Brief - October 20, 2014
October 17, 2014
In Brief - October 17, 2014
The Week In Review: 10/13-10/17
October 16, 2014
Michael Jordan Named PD At WAMZ
Dan Chertoff Named VP, A&R, RCA Records
Greater Media Chairman, CEO Peter Smyth Named Among The 2014 Giants of Broadcasting
Joe Cuello Joins TuneCore As Chief Creative Officer
Clip Interactive Reports Milestones In Revenue, MAUs, Engagement For Radio Station Partners
iHeartMedia Wins Gold Award At Healthcare Marketing IMPACT Awards
In Brief - October 16, 2014
October 15, 2014
Gayle Troberman Named iHeartMedia EVP And Chief Marketing Officer
John Geary Appointed Market President For iHeartMedia Sacramento
Sun & Fun Media Partners With Premiere Networks For Ad Sales
TuneCore Pays Artists $32.7 Million In Q3 2014 for Music Distribution, Expands Music Publishing Catalog
In Brief - October 15, 2014
October 14, 2014
Warner Music Group Broadens Senior Management Team
Tribune Media Announces $400 Million Stock Repurchase Program
Music News
Charli XCX, Haim and More Contribute to Hunger Games
Quick Hits: Meghan Trainor, Smashing Pumpkins, Milky Chance
U2 Sits Down For Intimate Radio Special
Quick Hits: Coldplay, Gwen Stefani, Foo Fighters, Dropkick Murphys, Madisen Ward and the Mama Bear
One Direction Reveal Four Tracklist
The Week In Review: 10/13-10/17
Quick Hits: Iggy Azalea, U2, Snoop Dogg / Pharrell, iHeartRadio Fiesta Latina
Pitbull Goes Global In November
Quick Hits: Sam Smith, MTV EMAs, Songwriters Hall of Fame, The Pixies, Fall Out Boy, Bonnaroo
Jason Aldean, Hozier Top Album Sales Chart
Quick Hits: Foo Fighters, Prince, Ariana Grande
Taylor Swift Taps Into the '80s For "Out Of The Woods"
Quick Hits: One Direction, Christina Aguilera / The Voice, Jack White, Kelly Clarkson, T.I., Wilco
Iggy Azalea Leads 2014 AMA Nominees
Quick Hits: Foo Fighters, Soul Train Awards, Iggy Azalea, Noel Gallagher's High Flying Birds, Alicia Keys & David Byrne, Forbes Under 30 Music Festival
FMQB NOW

Chris P, PD
KRQQ & KMIY/Tucson

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!