When you’re not watching TV or watching the news, you’re listening to podcasts
When I first heard about the streaming audio podcast service, I was skeptical.
It seemed like a new way for people to listen to podcasts, but it was also a way for companies to monetize their podcasts without having to invest in advertising.
That’s the idea behind Podcastrific, which launched in late 2014 with a $15-per-month subscription fee.
The service offers a number of free, ad-supported features, including auto-renewal of episodes and a $5-per/month in-app-purchases that let you subscribe to new episodes at a discounted rate.
And the company has been building a reputation for delivering high-quality, in-depth content in a way that doesn’t require subscription fees or subscription-heavy adverts.
And it has.
Podcasting is big business.
According to data from research firm Nielsen, podcasting revenue grew at more than 25% in 2016 and at more about $100 million in revenue in 2019.
But podcasting is also a new and potentially lucrative business for the company, which relies on a mix of paid subscriptions and advertising.
As podcasting has expanded, PodcastRific has been making its product a bit more affordable, too.
“We are looking at our advertising revenue in the future,” says PodcastiScoop CEO Matt Stelzig.
“Our goal is to make podcasting a little more affordable and a little bit more fun for people.”
The company launched in early 2017 and has grown steadily since then.
At launch, it was just about $5 for an hour of premium content, with episodes costing $5 to $20.
It was a good deal for a podcast.
But then came the $10-per episode rate, which was more than double what most people were paying for podcasts on Apple’s App Store.
Then came the premium pricing on a subscription plan, which dropped from $25 per month to $15.
“It wasn’t a great price point for a new product, especially since it was in a niche,” Stelzig says.
“You need a ton of inventory to keep up with demand.
You need to get the ads.
It’s kind of a no-brainer that you’re going to pay a lot of money to hear podcasts.
But it was a bit of a surprise to a lot people, and it made them feel like they’re missing out on some great content.”
Podcasting’s business model is different from most other forms of media.
The vast majority of podcasts are available for free online.
For that reason, podcasts are more difficult to monetise.
Peddlers can sell advertising to podcast hosts and listeners, but that’s a lot harder to do on the podcast platform.
The company’s ads are paid for through in-game purchases and subscriptions, which can be expensive.
“Podcasting was a very unique product for podcasting because of its scarcity,” says Stelzezig.
“The podcast was something people really wanted to hear.”
The podcasting market is now worth $50 billion, according to research firm Quantcast.
Picking a path for podcast monetisation That’s why the company decided to invest heavily in marketing and to develop an in-house advertising system.
“In the beginning, we just thought about it as just marketing, because it’s really difficult to make money in podcasting,” says co-founder and CEO Tim Osterholm.
“But we have to think about it more than that, because podcasting, even with that high demand, has a very low average revenue per episode, so the average price per listener is very low.
That means we have a lot more to make.”
The strategy has paid off, in terms of podcasting’s growth and popularity.
In 2017, Peddler’s average episode was 4.5 million, compared to an average episode of just over 4 million on Apple Podcasts.
“With podcasting today, you get around 20 million listeners every month,” says Osterheim.
We’re not just getting into podcasting for people who want to listen for free. “
What’s important is that we are getting into the niche where people are listening to high-end podcasts.
We’re not just getting into podcasting for people who want to listen for free.
Podcasts have also been gaining traction with a number in the media. “
When we think of podcasts, we think about those high-profile shows, and those show are great, but the majority of podcast listeners are not listening to those shows.”
Podcasts have also been gaining traction with a number in the media.
BuzzFeed recently launched a podcast called The Five, which is hosted by the journalist Amanda Hess, and has amassed a following of more than 60 million listeners.
The Five was the first podcast to be paid for by the BuzzFeed network, which has also made it easy for companies like Peddle and PeddoMedia to monet