Billboard magazine reports growth of podcasts hampered by lack of DRM

Billboard magazine's headline proclaims "Podcasts Coming of Age," but not if the record labels have anything to do with it.

The article, reported by Antony Bruno, formerly assistant vice president of wireless Internet development at the CTIA Wireless Internet Caucus, and now editor for digital/mobile at Billboard, says music is considered the killer app for podcasts.

Antony writes, however, "To date, the major labels have been reticent to license full-track songs to the podcasting community because podcasts are downloaded files free of digital rights management protection."

Go away!

In a few instances, songs are allowed in podcasts.  For example, public radio station KCRW can include in its podcasts songs that are recorded in its studio.  The station also offers video podcasts.

"But the music in these podcasts is limited to what is recorded in the studio or from independent acts.  Getting full-track studio cuts of major-label content is next to impossible," the article says.

Billboard quotes Jennifer Ferro, assistant general manager of KCRW, as saying, "The major labels aren’t interested in digital distribution or promotion through podcasting.  I think they’re waiting for it to go away."

I've written previously about Rhapsody Radio offering podcasts by KCRW for subscribers to Rhapsody's wireless service.

Huge market

The potential for advertising over podcasts is huge, according to the article.  "A recent eMarketer report predicted that podcast advertising spending will increase from an estimated $80 million this year to $300 million by 2010.

"Venture capitalists at Sequoia Capital — which participated in the $8.85 million funding of podcasting pioneer PodShow — say the market could grow to as much as $2 billion in the next five years."

Advertising revenues are based upon a large number of listeners.  Bridge Research estimates that nine million people listen to podcasts today.  By 2010 that number could increase to 12 million listeners in the United States.

Wireless podcasting

Antony writes a bit about wireless podcasting, including Pod2Mobile and Melodeo's Mobilcast, but he doesn't discuss the business opportunities in wireless.

The reason I started "Reiter's Wireless Podcast Report" is because I believe podcasting to (and from) wireless devices -- whether it's music or talk -- can generate revenues for the wireless industry.  Revenues can include advertising or subscriptions.

If you've been reading this weblog you know the wireless industry doesn't see podcasting as a big deal -- certainly not compared to wireless music, games and imaging.

Consider the possibilities

But with more than half the population of the U.S. carrying cellular phones and almost two billion cellular phones worldwide, you can't help but ponder the possibilities for wireless podcasting.

Comments

[spamstan]

The major labels are shortsighted when it comes to podcasts. Independents get it and they will be the ones to drive podcasting from the music perspective.

With respect to the market opportunity, it is huge. But wireless podcasting is about a year ahead of its time. There is still a general lack of awareness around podcasts - people know the term, but don't really know what it means. Those who do know what it means listen primary on their PC, not a portable device. Any company that wants to win in wireless podcasting needs to first be sure it is educating customers about what a podcast is, then why they want to listen to it "off-PC." After that it becomes easier to prove that the mobile is the way to go.