IDMB #1: Notes
I dropped the first real episode of my new podcast, I’m doing my best, earlier today.
Here are notes from the first show.
Everybody makes podcasts. Can anyone make them profitable? (link)
A quick aside that I didn’t include in the podcast. Notice the title of the Bloomberg article? Now, look at the URL: https://www.bloomberg.com/news/features/2019-02-22/everybody-makes-podcasts-can-spotify-make-them-profitable.
When the median audience for a podcast is 130, how do you make money, let alone a profit? It’s even more depressing when you realize the definition of median – the middle value – and that there are more than 600,000 podcasts just in Apple’s service. And that number is growing!
So, can you make a profit from podcasts alone? Probably not, especially given the cost to set up a podcast studio – whether in a closet or a professional studio – is rising. Listeners demand quality, after all.
While a profit from podcasting alone isn’t likely, there are revenue opportunities from related sources that may drive a profit.
Given today’s struggles in media land, should this come as a surprise to anyone?
Outgrowing advertising: Multimodal business models as a product strategy. (link)
Firstly, I don’t know anything about product strategy. Having said that, I do undersatnd the need to incrementally diversify a company’s offerings around a single, focused, core product. In this Andreessen Horowitz article, Connie Chan uses examples from the Chinese market to explain how an individual media product can turn into several revenue-generating offerings leveraging both advertising and subscription-based models.
The takeaway for me was less about revenue diversification and more about the technology infrastructure changes needed to drive a new, frictionless user experience. Can publishers and other organizations and individuals build a model based on artificial intelligence and a seamless transaction flow to offer an engaging and relevant product to those who are interested?
A very in-depth and interesting read.
The man who built his own media empire – in reverse (link)
In a town of 180,000, returning resident Richard Gurner wanted to provide a news service for his Caerphilly community in Wales. As a journalist and a Caerphilly native there was plenty of drive. And starting his new venture with a website made a lot of sense. Or did it?
It turns out, the local community didn’t understand digital advertising and likely wasn’t sure why it would spend money on something it couldn’t see or touch. So Richard looked at print as a way to subsidize his digital needs.
With nearly 10% of the Caerphilly community registered as paying Caerphilly Observer subscribers, Richard and his small team are able to use their digital presence to cover breaking news while the revenue from print allows them to provide more in-depth coverage based on breaking news or other relevant stories.
This is a great example of putting your audience first - both your customers and business partners.
Seems like you can go home, after all.
See you next week.
If you see me around, ask me about my new IRL sunglasses.