The Industry Standard On Why Podcasting Is Failing
Jul 19th, 2008 | By James Lewin | Category: General, Internet TV, Making Money with Podcasts, Video 
Ian Lamont, at The Industry Standard, has published his take on “why podcasting is failing” reacting to the news that much-hyped podcasting startup PodTech was getting bought by ViewPartner:
“Podcasting is failing as a business platform, and has failed to make a mainstream impact.
The news that PodTech only managed to limp into an acquisition therefore came as no surprise. Former PodTech star Robert Scoble admits on Friendfeed that there were plenty of management and board problems and notes “the company burned through $7 million (plus several million in revenues).” PodTech founder John Furrier, commenting on the same Friendfeed thread, asserts “we made some mistakes but [were] directionally correct.” Scoble says a big part of the original plan was the social media star power, supplied by the likes of Scoble, Jeremiah Owyang, Irina Slutsky, and Steve Gillmor.
But even if the stars had stuck around to the end, and the management and board problems were addressed earlier, I have to wonder how well this venture would have done. This was a hyped business built on one of the most hyped technologies of 2005. Once that faded, reality set in. As I pointed out in my original post, there are a lot of factors that are working against podcasting. Making programs is a labor-intensive process requiring special skills. In addition, there is no AdSense or AdWords equivalents for podcasts — advertising has to be sold, produced, and placed by humans.
There are problems with metrics too. While the industry is working on this, there’s still a lot of work to do and it’s uncertain how smaller niche podcasters will be able to benefit.”
Lamont’s view is important to consider, even though seems to disregard the unrelenting growth of interest in podcasts, increasing numbers of podcasters making their living through podcasts and Internet media and the fact that podcasting’s adoption curve is way ahead of its commercialization.
Lamont also is straining to make PodTech representative of podcasting as a whole. PodTech failed to do the most basic task of a content company – make interesting content.
Here’s why you should consider his viewpoint.
Commercial Podcasting Is Hard Work, Like Any Business
Lamont’s key points are that making good podcasts is hard work and that getting advertisers is hard, too.
Both points are true, but that hasn’t kept both companies and individuals from making great podcasts and getting advertisers. Many mainstream content publishers, like NPR, are repurposing their content for podcasting, using it as an easy way to extend their reach. Many publishers are creating free ad-supported content and distributing it via podcasts and the Web.
And a glance at iTunes’ podcast directory highlights that hundreds of podcasters are using the technology successfully to compete for your attention against global media companies.
While Lamont’s argument is weak and ignores basic technology adoption patterns, it is important to consider because his skeptical attitude is one shared by many.
Many people made wild predictions about podcasting in 2005, even suggesting that it would kill off radio. They are now disappointed in the technology because those wild predictions didn’t happen.
Most podcasters probably won’t make commercial quality podcasts. Most podcasters won’t build successful podcasting businesses.
But there are many podcasters that are doing both, and if the success of popular blogs is any example, the best commercial podcasters will change the media landscape.
Update: Mashable’s Mark ‘Rizzn’ Hopkin has posted an interesting response to Lamont’s article:
“Podcasting has evolved a bit since PodTech was founded, and those getting into it now have a much clearer vision of what it means to go about podcasting in a profitable manner. For those with established brands, it isn’t particularly difficult to make a profitable go of it (there are a number folks out there doing that, including us here at Mashable).”
It’s interesting to see Hopkins countering Lamont’s “podcasting is dead” arguments.
Just six months ago, Hopkins was critical of podcasting’s commercial potential, because of problems he’d encountered in generating interest his own podcast. It’s clear that his perspective has evolved.
“A lot of us early adopters got stars and money signs in our eyes when we first started playing with podcasting,” notes Hopkins. “Podcasting isn’t dead, it isn’t a failure, and it isn’t impossible to build a business around.”
Image: penmachine
Hello James,
Thanks for noticing my essays about podcasting (linked from my name). I like the way you summed up one of the most important facts about podcasting — it’s hard work. This is glossed over by a lot of outsiders discussing the PodTech news, and I really think it has to be considered when discussing podcasting-focused startups.
However, I have to take issue with two of your statements:
1) “Lamont also is straining to make PodTech representative of podcasting as a whole. PodTech failed to do the most basic task of a content company – make interesting content.”
I never said PodTech is representative of podcasting as a whole, but it does provide a lesson for companies interested in getting into podcasting as a business. Note that there aren’t that many self-sustaining businesses whose revenue is mostly derived from podcasting. Also, regarding your comment about a lack of interesting content, I think it’s unfair to generalize — some of the content was strong, other programs were weak. I actually enjoyed Robert Scoble’s interviews, while he was still working there.
2) “Lamont’s argument is weak and ignores basic technology adoption patterns”
I understand that not everyone will appreciate my stance on podcasting, but your statement that I ignored basic technology patterns is false. In my two essays and the comments threads, I spent a great deal of effort quantitatively analyzing audience awareness and use of podcasting, and made some direct comparisons with blogging, Twitter, and mainstream broadcasting adoption patterns.
Thanks for the chance to discuss podcasting,
Ian Lamont
Managing Editor
The Industry Standard
When Podtech was founded it was a good podcast. I thought that they did a good job of making it a business with video and working with top corporations. I never felt like Robert Scoble was doing anything innovative except pumping up his own brand at the expense of the company. For some reason he seems to be acting like he was the face of podcasting. He did videos and was their talent. Scoble is a PR representative for buzz marketing. In the end PodTech brought awareness to podcasting at a corporate level. I’d hardly call it a failure for the industry. Maybe a failure for the venture investors but not for the people in the industry. Many Podtech people are doing good things out there in social media. Hardly a failure in my mind.
Podcasting is growing and will continue to grow.
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So, is YouTube a failure, too, because Google is still trying to figure out the best way to make money with it?
I can see in part the arguments given here. Yet, I think the problems monetizing it lie in a slightly different vein than what is explained. Primarily, I see two big problems.
1. Companies are still hesitant to dive into advertising with independent podcasts because they are still concerned with audience size. Let’s face it, only those with sizable audiences get even a blip on most advertiser’s radar screens.
2. Podcasters are creating media, but they’re not sales people. I REALLY see this as one of the biggest drawbacks. How do we seek out advertisers? If someone approaches us, how much do we charge? Selling media is a rather difficult sales position to begin with (just ask my friends in broadcasting). Trying to sell new media advertising has to be even more difficult, especially when you add the lack of sales experience for most podcasters. When the podcasting networks started to appear, one of the biggest draws was the notion that other people could do this sales work for you. The truth is, even with their sales experience, there are only so many people seeking out advertisers. Trying to sell for each little niche makes its even more difficult, so the networks went to big-names that don’t require a niche to sell to, which dilutes the real power of new media.
I also take some serious issues with the thought of: “A lot of us early adopters got stars and money signs in our eyes when we first started playing with podcasting,” I don’t know if I’d agree with this. I think most of early adopters put love of podcasting first, and considered monetizing our podcasts as nice goal much later down the road. Hardly “when we first started playing with podcasting.” I won’t deny that there was a batch of people toward the end of 2005 into 2006 that seemed to have $$ on their mind first and foremost when they got into podcasting. One of the most asked questions I’d get was “so how do you make money doing it.” Standard answer: Don’t do it to make money, because chances are you won’t. Do it because you have a passion for the topic, THEN seek out monetary rewards. I don’t know… maybe I’m just a “REALLY early adopter” then.
Ed – great points.
There WERE a lot of people in 2005 & ’06 that had dollar signs in their eyes when they talked podcasting. A lot of people and even tech and business analytsts thought that podcasters making shows in their basements were going to “kill” radio.
The Standard’s view seems more a reaction to that inflated hype than an accurate take on what’s happening now.
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[…] The Industry Standard On Why Podcasting Is Failing Ian Lamont, at The Industry Standard, has published his take on “why podcasting is failing” reacting to the news that much-hyped podcasting startup PodTech was getting bought by ViewPartner: “Podcasting is failing as a business platform, and has failed to make a mainstream impact. More here: The Industry Standard On Why Podcasting Is Failing […]
[…] The Industry Standard On Why Podcasting Is Failing Ian Lamont, at The Industry Standard, has published his take on “why podcasting is failing” reacting to the news that much-hyped podcasting startup PodTech was getting bought by ViewPartner: “Podcasting is failing as a business platform, and has failed to make a mainstream impact. … More here: The Industry Standard On Why Podcasting Is Failing […]
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