Reiter's Wireless Podcast Report

Melodeo's senior marketing manager discusses wireless podcasting service

Rob Greenlee, the senior marketing manager for Melodeo, discusses his company’s wireless podcasting platform, Mobilcast, as well as issues related to Mobilcast’s offerings.

Rob spoke at the April meeting of the Seattle Podcasting Network and an mp3 file of his presentation is available online.

Business Week examines podcasts + commercials over cellular

Business Week reports on the tremendous potential of cellular phones for podcasts and also the potential for advertising on podcasts.

The article discusses companies focusing on offering podcasts for cellular phones, including Pod2Mobile, Melodeo’s Mobilcast network and a new company, UpSnap (see below).

“With UpSnap, which launched 100 free mobile podcasts on March 27, you can simply dial a number to listen to your program from your phone,” the article says. 

“In a few weeks, the service will also allow users to get podcasts to their phones wirelessly by sending UpSnap a text message.  Rival Pod2Mob allows for the text message feature and has built a user base in excess of 100,000 since its launch last summer.”

Podcast advertising

Business Week says the domain name seller of GoDaddy is interested in exploring advertising over podcasts.  Barbara Rechterman, the executive vice president of GoDaddy says in the article, “The cell phone will become the next podcast-listening device.”

For the past two months the independent music retailer of CD Baby has been advertising on podcasts over cellular phones.  CD Baby has been running 15–second commercials with its $1,000–a-month ad budget.  That’s half of its advertising budget.

Derek Sivers, CD Baby’s owner, says in the article that the commercials’ results “are right in line with traditional advertising.  And I just like the idea of targeting people who are online already and interested in listening to MP3 files.  That's our target market.”

Better ads on cellular?

Business Week suggests that ads on cellular phones could be more interesting and generate a greater response that ads for non-cellular broadcasts. 

The article says, “As with a video iPod, a cell phone ad can feature audio, graphics, or video. With a phone, though, a user can immediately respond by calling a marketer's call center or by wirelessly surfing the advertiser's Web site.”

It will be interesting to see whether consumers accept ads on wireless podcasts.  Since you’re typically listening to a wireless podcast for a shorter time than when you’re sitting in an office, on a plane or in a hotel room, the ads should be, perhaps, shorter.

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.