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Podcasting Goes Pay-to-Play

Posted by ScuttleMonkey on Mon Feb 20, 2006 06:37 PM
from the get-fans-and-make-em-pay dept.
James Draven writes "For the last year, people have been wondering - how to make money off podcasts? Some have dabbled with advertising, some with user donations, but now the most popular podcast on iTunes is moving to a subscription model. Bit-Tech is reporting that the Ricky Gervais Show will cost $7 a month starting next week."
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  • Well duh! (Score:3, Insightful)

    by Anonymous Coward on Monday February 20 2006, @06:40PM (#14764171)
    Of course people who produce content want to be paid. Unlike people who code in their garage and think information wants to be free...
    • I've been listening to the Ricky Gervais podcast since the first episode, and it is damn funny. (Monkey News kinda lost something after about the 4th week, but the damn diary more than makes up for it.)

      This is one podcast I would be interested in paying for. I usually laugh out loud like an idiot during the whole show. These guys are pros, and it shows.

      Sadly, the only other podcasts I have found that I like are Major Nelson and Distorted View.

      I *might* pay for Major Nelson, just because I am an Xbox geek
    • Re:Well duh! (Score:4, Insightful)

      by TedCheshireAcad (311748) <ted&fc,rit,edu> on Monday February 20 2006, @06:57PM (#14764289) Homepage
      I produce content on my blog and don't expect to be paid. It would be nice, but it ain't going to happen. I would assert that 99% of podcasts are just some jackass going on about how awesome Ruby on Rails is and complaining about how much money he isn't making with AdSense.
    • by Overly Critical Guy (663429) on Monday February 20 2006, @07:10PM (#14764365)
      The submission says, "For the last year, people have been wondering - how to make money off podcasts?" But Apple said when they first released podcasting support in iTunes that there would be support for podcasts you'd have to pay for. So really, nobody's been wondering this for the last year.
    • Re:Well duh! (Score:5, Insightful)

      by saltydogdesign (811417) on Monday February 20 2006, @10:05PM (#14765051)

      people who produce content want to be paid.

      Before human culture became subsumed under the term "content," these used to just be called "people." As the existence of the Internet attests, there are plenty of people who contribute to culture and couldn't care less whether they get paid for it.

      But, you might have a point. The next time I have a conversation with someone, I think I'll suggest to them that I'm "providing content" and ask for a small fee.

      • by umbra_dweller (797279) on Tuesday February 21 2006, @02:46AM (#14766002)
        A man plays a violin sitting on a park bench. He is relaxing after a hard day of work, and indulging his personal hobby in a pleasant environment. People in the park pass by and enjoy his music, and he does not care whether they listen or not.

        Another man plays on a street corner, an upturned hat at his feet with a few coins inside for people to get the idea. He would play no matter how many generous souls pass him by, he always did like the attention you see - but he could use some more cash and he is making a polite request that those who listen show their appreciation through payment.

        Yet another man plays in a nice restaurant, lending a pleasant atmosphere for dining, and on occasion for romance. Not only does the establishment pay him, but he also receives tips from patrons that feel either obligated or grateful.

        Is there not a place for all such men in the world? Is one nobler than the others? They are all performing for some reward - one for his own contentment, another for attention, and the other for money - they merely have different definitions of reward. Or should we expect all men of such talents to resign themselves to park benches and play for our delight?
  • by coolgeek (140561) on Monday February 20 2006, @06:40PM (#14764172) Homepage
    Remove shoe, shoot self in foot.
    • Cable TV? People thought that was suicide. Satellite radio? People thought that was suicide. Pay for something that's already free?! It's. Not. A. Bad. Idea.
      • Re:Great Idea!!! (Score:5, Interesting)

        by coolgeek (140561) on Monday February 20 2006, @10:50PM (#14765246) Homepage
        My first exposure to cable was in Manhattan, where people welcomed it because it was damn near impossible to pull a signal. After that, it was a great idea to pay money to not see commercials, but then the commercials came anyway =( Thank god for TiVo, but I digress. My point is you are the first individual that I have ever heard saying "people thought cable was suicide".

        The jury is definitely still out on Satellite radio. You did read about how XM's loss widening [smartmoney.com] this week, didn't you?

        I'll bet a few idiots will pay for their podcast, however, I don't think it's going to work very well. First, people are going to have to go seek out the audiobook version of their content on a weekly basis, instead of having it auto-sync'ed to their iPod. Second, this is going to greatly decrease their audience, which is never good for performers. Third, they've priced themselves out of the market, a podcast is not worth $3.50/hr when TV is going for 1.99/hr.

        I could see paying a subscription of about $7/month to a podcast aggregator site to gain access to all of the content new and archived for maybe a season. Like I said, some people will buy their show but most people won't. In the process, they have alienated their audience, thus the reference to shooting oneself in the foot.
  • by HeavensBlade23 (946140) on Monday February 20 2006, @06:42PM (#14764176)
    Good luck getting subscriptions at that rate. HBO is only like $25.
    • Yet another strong argument in favour of micropayments. Apple might have tried something prior to now, but the licensing terms of the RIAA has really knee-capped them in this regard. RIAA sees the iPod and iTunes as a threat...what they don't realise is that as long as one body is strong enough to maintain a virtual monopoly, they only have to regulate one source. They're not having as much luck with allofmp3.com it looks like...
    • Crazy (Score:5, Insightful)

      by umbrellasd (876984) on Monday February 20 2006, @07:58PM (#14764586)
      Almost as crazy as people that spend $5/day each month on a latte, eh?
    • by sparks (7204) <acrawford.laetabilis@com> on Monday February 20 2006, @09:14PM (#14764870) Homepage
      No, not seven dollars a month. Seven dollars for the whole of the season of podcasts. The last season was twelve episodes; they're not committing to a number for this season but are guaranteeing at least four. I'm expecting twelve again in practice.

      Also, it's not a recurring charge but a one-off.
  • Correction (Score:5, Insightful)

    by Seanasy (21730) on Monday February 20 2006, @06:42PM (#14764177)

    A podcast goes pay-to-play.

    The title makes it sound like all of podcasting is suddenly going to a subscription model which is ridiculous hyperbole.

    • Re:Correction (Score:5, Informative)

      by wealthychef (584778) on Monday February 20 2006, @07:07PM (#14764349)
      Not only that, but there are already numerous podcasts which charge money. For example, CarTalk is pay-to-listen if you want the podcast (the broadcast on radio is of course free), and Coast to Coast with ARt Bell is also for a fee, podcast-wise.
    • Taco's Razor: Never ascribe to hyperbole what can be properly ascribed to sloppy prose.
  • Why this is stupid (Score:4, Insightful)

    by Theatetus (521747) on Monday February 20 2006, @06:42PM (#14764178) Journal

    This is stupid because nobody makes money for content directly off consumer in any broadcast medium. Why does the sudden addition of the Internet change this in people's minds? I pay $0 directly to the networks for their broadcast content. I pay $0 directly to the cable companies for their cable content (though the cable provider does filter some of my money back to the stations -- it's still not me paying the station; if it was, I could order just the channels I want). The only time a content provider gets money directly from me is Pay Per View, which seems limited to good boxing matches and pr0n.

    The same idiocy of assuming the Net must play by different rules goes into advertising decisions too: execs get 0 click-through from TV ads, but they freak out when they don't get X% click through from Net ads that they are paying significantly less for. Consider yourself lucky for being able to shove your brand into my face for 15 seconds and then move on, dude.

    • by paulthomas (685756) on Monday February 20 2006, @06:58PM (#14764294) Journal
      It might be stupid for you, but that is exactly why it is great. BECAUSE you don't have to buy it.

      People who do value it on the other hand, will buy it. I for example value WOXY.com, a radio-format webcaster of modern rock (and modern rock podcasts). When advertising $$s didn't come through for the new format, I was one of the first to join, because I value the service highly, and I was able to put my money where my mouth had always been.

      Now I pay with a (truly minute compared to the value) amount of cash, instead of paying in terms of minutes of ads.

      TANSTAAFL,
      Paul
    • This is stupid because nobody makes money for content directly off consumer in any broadcast medium.

      Luckily this is podcasting, not broadcasting. You can control who gets your 'signal' in a podcast, for the most part. Also, check with DirecTV and find out how many people pay for content from them. They're broadcasting across the globe.

      This is stupid because nobody makes money for content directly off consumer in any broadcast medium. Why does the sudden addition of the Internet change this in people's minds
    • Why this is good (Score:5, Insightful)

      by timeOday (582209) on Monday February 20 2006, @07:16PM (#14764401)
      This is good because now the money will go to the people who make the contenet, instead of some middleman like advertisers. I'd rather pay a musician $4 for an album than pay $16 to a label. Or there is ad support, but under the old system, you have to watch a lot of ads to support content, because watching ads isn't very productive. Under the new direct system, the cost of programming will be much lower, if your time is worth anything.

      I do think the market will drive the price lower than $7/mo though.

      • by vertinox (846076) on Monday February 20 2006, @08:58PM (#14764805)
        It's capitalism. Deal with it.

        I think he is dealing with it... By um... Not purchasing the services... And spending the money on something else of more value.

        That is capitalism too ya know.
  • Subscription? (Score:3, Insightful)

    by jomas1 (696853) on Monday February 20 2006, @06:44PM (#14764192) Homepage
    I'm suprised they are going with a subscription based model. $7 for 4 episodes and I'll get billed monthly? While I'd consider a subscription for something like the Daily Show aren't podcasts more like songs i.e. something people are willing to spend 99 cents to purchase at will?
    • > While I'd consider a subscription for something like the Daily Show

      Agreed. I'd be willing to pay a reasonable subscription for the Daily Show and the Colbert Réport. Unlike regular TV shows, they don't have as much replay value (A year from now, how many people will say, "Ooh! Let me re-watch that send up he did of Cheney shooting a 78 year old man in the face!"), but it would be nice to be able to catch episodes instead of staying up late. I can see paying $7/mo for a monthly subscription (20 epi
    • I'm suprised they are going with a subscription based model. $7 for 4 episodes and I'll get billed monthly? While I'd consider a subscription for something like the Daily Show aren't podcasts more like songs i.e. something people are willing to spend 99 cents to purchase at will?

      No, the entire point of podcasts is that they're subscription-based. You subscribe to a feed (whether free or not), and new content is downloaded automatically as it becomes available, for listening/watching at your leisure. If I
  • Really stupid idea (Score:3, Interesting)

    by aychamo (932587) on Monday February 20 2006, @06:45PM (#14764193) Homepage
    This seems like a really bad idea.. I've never heard a single podcast that I would pay for, even a few dollars a month.
  • 7/month (Score:3, Informative)

    by sirnuke (866453) on Monday February 20 2006, @06:45PM (#14764194) Homepage
    No podcast is worth $7/month (at least the ones I've heard). That's more than what I used to spend on dial up Internet access.
  • How? (Score:3, Interesting)

    by mccalli (323026) on Monday February 20 2006, @06:46PM (#14764204) Homepage
    Leaving aside the debate over why for a moment - I'm interested in how. You see, I'd like to create a protected podcast which just my family and relatives could listen to, but I saw nothing in the protocol to allow me to require a password, nor anyway in iTunes to specify security information for a podcast.

    So how is this done?

    Cheers,
    Ian

    • Re:How? (Score:4, Interesting)

      by machiabelly (791923) on Monday February 20 2006, @07:32PM (#14764474)

      I was very surprised to find out, but iTunes actually lets you access a podcast protected through the regular HTTP basic or digest authentication.

      When you subscribe to such a feed iTunes will ask you for a username and a password.

      Try subscribing to this feed in iTunes, for example: private feed [potionfactory.com]

      So if your server lets you setup your own HTTP protection through .htaccess or what not, you can password protect your podcast. If you combine this with SSL, you have a pretty solid protection mechanism, but for just family stuff I would think that the digest authentication is good enough. Just don't use basic authentication because that will send the password over in cleartext.

      More on this topic in my blog [potionfactory.com]

      (Disclaimer, I write podcasting software for the mac os x)
  • NPR on Audible (Score:4, Informative)

    by tfinniga (555989) on Monday February 20 2006, @06:49PM (#14764220)
    You've been able to subscribe to NPR podcasts on Audible for quite a while - before the term podcast was widespread anyway. Recently, a few good ones like "Wait wait, don't tell me" have become free via sponsors, while others like "This American Life" [thislife.org] are still only available for download for a fee (streaming is free).
  • by jonathanbearak (451601) on Monday February 20 2006, @06:49PM (#14764222)
    I'm very curious to see how it pans out. It would certainly see a lot of analyst attention, the first paid-for iTunes-only subscription.*

    Yet this, $7, is almost 4 times the cost of a television show. I could buy two hours of Galactica (or something more popular. ... Desperate Housewives, for the mainstream audience) for $3.98. Or I could pay double for the same amount of plain audio.

    They need to offer a lot more for this to be successful.

    99 cents a show is simple enough. That, I'd try out.

    This is an unproven medium. A good entry point is required. Individual tracks sold like songs would work well. What they're trying to do will put many people off. Then again, maybe enough people really really like Ricky Gervais. But probably not.

    * (iTunes + audible, whatever -- everyone will focus on the Apple end of things; they're more newsworthy, whether or not you agree with it.)
    • Yet this, $7, is almost 4 times the cost of a television show. I could buy two hours of Galactica (or something more popular. ... Desperate Housewives, for the mainstream audience) for $3.98. Or I could pay double for the same amount of plain audio.

      In England, audio comedies regularly outsell all but the biggest music hits. It's a cultural thing. Check this Guardian article. [guardian.co.uk] It talks about a British company that gave free iPods + comedy audiobooks to all its employees.

      However, in other news: The Ricky Gerva

    • Yet this, $7, is almost 4 times the cost of a television show.

      $7 == one month of gervais podcast == 4 shows. That's $1.75 per half-hour show. That is in-line with what apple is charging for TV shows.

      But, but, but this is audio only. Whatever the market will bear...
    • I can listen to podcasts while I work. I cannot watch TV while I work. Therefore, audio entertainment is more valuable to me.
  • by paulthomas (685756) on Monday February 20 2006, @06:49PM (#14764227) Journal
    This recalls the discussion we had a while back about online radio. WOXY.com [woxy.com] (The Future of Rock and Roll) is also going pay to play.

    All of the podcasts of live acts playing in their lounge and also the podcasts of the unsigned band show will be available for download for subscribers, much like the example this article provides.

    It looks like the reality has finally hit that nothing is free. At least though, WOXY.com is a good deal. You get the podcasts, and real DJs streaming quality music live over broadband quality streams.

    I personally wish everyone the best in their efforts to make entertainment sustainable, independent, and listener supported, both with regard to the new effort via iTunes, and independent groups like WOXY.com who have seen the future of quality entertainment.

    Best,
    Paul Henrich
  • by serginho (909707) on Monday February 20 2006, @06:49PM (#14764228)
    I don't think will mean much for 99,9% of podcasters out there, since these guys mentioned in the article were already famous when they started their show and, on top of that, had the benefit of being promoted by a newspaper such as The Guardian. For most podcasters, I still think that donations are the way to go. There's one problem, though. Once you subscribe to a podcast, you rarely return to the site, so I would guess "impulse" donations are harder to come by. Maybe iTunes (or other aggregators) should include a donate option. I know, it will probably never happen, or they'd get a cut, but this seems to be a fair way of compensate podcasters without creating paid subscriptions.
  • Expensive (Score:3, Informative)

    by Salo2112 (628590) on Monday February 20 2006, @06:52PM (#14764249)
    Rush Limbaugh charges like 5$ a month for his podcasts, and Al Franken's and Ed Schultz's are free. This guy is way over-priced. It's not that a subscription model can't work, but you can't charge way more than the market will bear.
  • Um, no... (Score:5, Informative)

    by jwachter (319790) <wachter@g[ ]l.com ['mai' in gap]> on Monday February 20 2006, @06:54PM (#14764267) Homepage
    Did either the submitter or the editor bother to read TFA?

    The only "news" here is that a single, previously free podcast is now going to sell itself on Audible.com and remove itself from the iTunes Music Store. There is no new functionality being added to iTunes (such as a way for individual podcsters to sell their own content).

    Nothing to see here. Please move along.

    Jonathan
    • Actually, it will STILL be available on iTunes- just through the pay Audible section, not the free podcast section.
  • Throwaway stuff (Score:3, Insightful)

    by jack79 (792876) on Monday February 20 2006, @06:56PM (#14764281)
    I like the Ricky Gervais podcast a lot - but I'd class it more as throwaway entertainment. Unlike his TV shows I can't imagine ever wanting to listen to one of his podcasts multiple times. Right now I download, listen, delete. If I was paying for the show - even the small amount suggested - then I'd want something more substantial. And to be honest there is plenty of free content out there to keep me going.

    Second point is that this is a small subscription - but for a half hour show. If all the shows I listened to also decided to charge a small amount then this would very quickly turn into a lot of money. Maybe it would make more sense to charge for a pick and mix channel of shows?

  • by Petronius (515525) on Monday February 20 2006, @07:57PM (#14764578)
    This is what I used to do a while back:

    $ cat ~/bin/ra2pcm.sh
    #!/bin/bash

    mplayer -nocache -really-quiet -vo null -af resample=44100:0:1 -ao pcm -aofile $HOME/mp3/RADIO/`date +%y-%h-%d-%R`.wav $1


    then I got lazy with iTunes & my iPod... If I have to go back to that, fine. It's not the end of the world.
  • It had to happen (Score:4, Insightful)

    by ben_1432 (871549) on Monday February 20 2006, @07:58PM (#14764582)
    I don't think $7/month is a reasonable amount. I wouldn't pay that personally.

    Having said that, I do think it is inevitable that this happens. The cost to provide the podcasts, and the exhaustive work creating them, had to be reimbursed from somewhere.

    Donations simply don't work - I removed all advertising from a popular site of mine for 6 weeks, and instead put a donations page. 6 weeks and 3,000,000 files served later, the donations totalled $0.

    If the Red Cross, World Vision, Salvation Army etc struggle to get donations, having to resort to tv/radio campaigns begging for money, then I don't like any websites chance of succeeding.

    Because the medium is an mp3, the advertising is limited to injecting ads like on a radio. The value of those ads (in my opinion) is less because someone might well be commuting or otherwise occupied when listening. It's not like 'traditional' web advertising where the ad is in front of you and can be clicked for an immediate response and/or roi.
  • by Lord_Dweomer (648696) on Monday February 20 2006, @08:08PM (#14764622) Homepage
    The Subscription Wars are fast upon us. It seems like every company out there is trying to turn their business model from one-time payment into a monthly subscription. Why? Because it is a steadier revenue stream.

    Unfortunately, when everybody starts trying to charge a subscription for their "service"...and nobody seems to have many subscriptions under $5/month...they will end up feeding off each other. I only make $X/month, and before, I would save up and purchase something. But now it seems companies want me to keep paying them month after month, and my paycheck can cover only so many subscriptions. I think companies will fast realize that not all of them can charge a subscription, and in fact they might do better not to.

  • Strange language (Score:3, Interesting)

    by nagora (177841) on Monday February 20 2006, @09:06PM (#14764842)
    I think I've got it now:

    "Podcast" = recording.

    "Subscription" = paying for new recordings.

    "Podcasting goes pay-to-play" = buying newly released audio recordings with money. Haven't we been doing that in music shops for decades?

    Is this news just because the word "podcast" sounds more exciting than "a recording"?

    TWW

  • by DeveloperAdvantage (923539) on Monday February 20 2006, @09:28PM (#14764881) Homepage
    I think if the content is good enough, people will pay for it.

    The whole notion of "podcasts" has done audio content is huge disservice. Most podcasts I have heard really are not that good. They are filled with uhmms and ahhs, akward pauses, and often appear adhoc, unedited and unprofessional. We need a better name for properly researched, recorded and edited audio recordings which are not too long, and, as I have before, I suggest we call them "audicles" and move away from the "podcast" debacle.

    Non-music audio content has a bright future. I believe though the growth will be in audio books. These must be professionally researched and written, and have high quality content, just like any other book on the market. For some interesting audiobook stats, take a look at http://www.simplyaudiobooks.com/processInterfaceAc tion.php?pId=138&rId=3 [simplyaudiobooks.com]. (I am not affiliated with them in anyway).

    For primarily text based books, it is relatively straight forward to create an audiobook from them. Just have someone, maybe or maybe not the author, read the text into a microphone and then do some editing. I listed to Bill Clinton's "My Life" on audiobook and quite enjoyed it, and also to the "War of the Worlds", which was also good. I also tried to listen to the Feynman lectures on audio (my academic background is in Engineering Physics), and this was where I felt the audio medium did not work well. For technical topics, it is very difficult to covert a lecture or a book to an audio only medium; instead, you really need to write from scratch specifically targeting the audio medium.

    So, this is what we are currently working on, developing audiobooks for software developers. So far, the feedback has been overwhelmingly positive. We are currently allowing people to freely download them, but eventually expect people to pay for them. Many people have said that they would gladly pay for the high quality audio books we are providing. But, saying it is one thing, the ultimate test will be when we actually make the switch from free to pay and see how many sales we have.
  • by neo (4625) on Monday February 20 2006, @09:42PM (#14764931) Homepage
    It's been show that you can generate great interest in online content with a yearly subscription, but not with montly subs. When people think about a montly subscription they start to add the numbers in their head and quickly figure out that the thing isn't worth the money... but yearly subscriptions feel less painful. You feel like you're going to get this forever for this one price. Like you're buying the show rather than renting it.

    Plus you get way more subscriptions this way from people who eventually drop out. Going for a low cost yearly is much smarter than a higher cost montly rate.
    • > 7 bucks a month a bit high for 2 hours of combined entertainment?

      Yes. It was vaguely funny, but really no funnier than listening to any other DJs frankly. It seemed too off-the-cuff for me to believe there was a lot of prep time to justify me paying for episodes.

      The irony is I'm happily paying for episodes of The Office (US version, but Ricky Gervais is an executive producer there). At $2 an episode, it's a great deal. However, the show has replay value and nuance, where surprisingly, I catch other thi
      • To me, this does tend to indicate that perhaps he's not such a brilliant actor... not by the normal definitions of what makes a good (or brilliant) actor. Yes, he wrote a very funny sitcom and played a very, very funny character. But you're right: he *is* that character

        No, he's not. If you've seen him in anything else, or just being himself in an interview, you'd know that he IS NOT David Brent, though naturally he draws on aspects of his life in playing him. And if you think how despicable Brent is in ma

    • Re:pod casts (Score:5, Informative)

      by Cadallin (863437) on Monday February 20 2006, @07:16PM (#14764398)
      Yes, we've had similar things for years, but the difference now is that they aren't tied to some obnoxious proprietary player, like Realplayer. Podcasts leverage an open standard, RSS, to communicate the release of episodic material generally in a format everyone can play, MP3. You can access podcasts purely with firefox. That's the advantage. And it's not "for the ipod" The idea is that podcasts can function as a portable replacement for Talk Radio. The "Pod" in podcast comes from the fact that the iPod is far and away the most popular portable mp3 player. (You can argue whether that status is deserved or not, but it is true) The ipod name gets attached to vaguely related phenomena in the same way it is common to speak of "xeroxing" regardless of whether the device one uses is manufactured by xerox, or canon, or lexmark, etc.

      The real advantage of Podcasts is that they can be accessed by anyone with a computer that has an RSS reader, and can be played back by any device that plays MP3. That's just about as darn near universal as I can imagine. And that IS a worthwhile contribution.

      That it also lowers the barrier to entry of distribution is also valuable because podcasters HAVE to compete on quality, whether you are a megacorp with a $10Million dollar studio, or an amateur with just a mic and a dream, or anywhere in between, You compete based on quality of content.

      Even better is that in terms of audio quality, studio equipment has become so inexpensive that with an investment of just one or two thousand dollars, it's possible to have quality indistinguishable from a huge studio to the average listener. It really is a means for democratization of the media.