My Web 2.0 Blog

Last week, I was reading a chat session by the Sports Guy, Bill Simmons. I’ve been reading Simmons regularly since a friend introduced me to his columns back in 2001. Back in 2007, he began doing podcasts as well. During the chat session, he mentioned his feelings on what he sees happening with podcasts:

“It’s like radio on demand and I think it’s going to kill satellite radio in 2 years. I really do. It’s also a huge threat to real radio in my opinion, especially when people can get internet in their cars and can just cue podcasts up within 3 clicks.”

He also talks about radio becoming much more niche-oriented over the next decade, even noting the prescience of “Pump Up the Volume” (a movie I’ve long been a fan of). I’m trying to decide if I agree with Simmons.

I don’t have satellite radio, but know people who do and most love it. The homogenization of regular radio over the last 10-20 years (thanks Clear Channel!) has made it much less appealing to listen to. Oddly enough, it’s also losing money.

According to this Rolling Stone article, radio saw record declines in 2008, its worst since 1954. It also mentions how SiriusXM can’t be fully to blame for the downturn, since the stock was hovering at 17 cents (it’s now a little above 14 cents). The recession obviously has a lot to do with radio’s revenue issues, but I think it’s safe to say that the Internet is contributing, too. People have so many more options with the Web – and those options include podcasts.

The question, of course, is how podcasts can make money. Will listeners be okay with advertising regularly interrupting podcast streams? Will advertisers be okay providing visual advertising to audio podcasts (since visuals can be added to audio podcasts), or would that even make sense? Can podcasts make money based purely on sponsorships? Can options such as donations from listeners or Google’s AdSense generate enough money? All questions that have yet to be answered.

Personally, I’m still waiting for someone to figure out a revenue model for podcasting that truly works. Whether it’s a few years down the road like Simmons suggests – hard to say.