Is it just another case of history repeating?
The podcast business model has been through a lot of changes in its history. From the early days of iTunes, to the rise of streaming services like Spotify, to the explosion of social media platforms, the ways in which people consume and share podcasts have changed drastically.
The business model for podcast production has had to change as well. The question is, is it looking forward or backward for answers on how?
That’s the question three panelists tried to answer at the Everything Old is New Again: The Podcast Biz Model panel at this year’s SXSW. Moderator Ilana Susnow, Head of Marketing at PodcastOne, was joined by Jenni Skaug, President of Sonic Influencer Marketing; Gary Ousdahl, Executive Producer of Netflix’s Cobra Kai; and Kit Gray, President of PodcastOne.
All of whom, they learned during the event, got their start in podcasting working with Adam Carolla. They discussed everything from the industry’s current script, so to speak, the best way to monetize, and why the talent’s social footprint isn’t necessarily a guarantee of success.
Podcasting is a unique medium in that it combines the best of both old and new media. On one hand, it has the traditional audio format that has been used for radio and other forms of audio entertainment for decades. But on the other hand, it also utilizes new technologies like streaming, social media and YouTube to reach a wider audience than ever.
That means that it has the potential to connect people in a digital space in ways radio never could. It also means many more avenues for targeted advertising that actually works.
In fact, the ad space model is the primary way podcasts make money. The other option is using a subscription model, where listeners pay a monthly or yearly fee to access exclusive content, similar to how Netflix or Hulu work.
According to Gray, it’s just not a realistic way for most podcasters to monetize. “There’s just so much great free content out there,” he says. The other two panelists agreed.
For new podcasters, Gray advised you “go as wide as possible” with your content. Then, once you’ve gained enough popularity, you could consider putting some things behind a paywall for subscribers or Patreon patrons.
Skaug concurred, adding “if you make a pay wall, you have to have amazing content.” Which you should be creating anyway. But without a significant following, people aren’t as likely to buy the cow when they get the milk for free.
And a large social footprint is helpful, but when it’s time to decide whether or not to sign talent for a podcast, isn’t always a great indicator of success. A big social media following can certainly help boost a show’s profile, but it doesn’t guarantee the podcast will go as viral as the talent’s posts. Even fame in the traditional sense through film, television, music or sports, doesn’t guarantee success.
“The people who really succeed are the people who put in the work.”
Gary Ousdahl
The real indicators, according to Skaug, are the demographics and engagement of that social following. “A heavier millennial base that is highly engaged equals better chances of success,” she says.
The panelists were in unanimous agreement that, whatever your social footprint, to be successful in podcasting, it takes commitment, research, and planning. “The people who really succeed are the people who put in the work,” Ousdahl says.
Gray said that when he meets new talent working with PodcastOne, they always have to have the talk. “If we care more about your show than you, then there’s a problem,” he tells them. “It shouldn’t even launch.”
“Figure out what you’re going to say in episode 13,” Gray says. Because starting a podcast is easy — for the first few episodes. But for a podcast to last, it takes work, vision, strategy, and the drive to succeed.
As for the future of podcasting? Well, it involves more than just podcasting. Moving into the future, podcasters and podcast producers will need to have a 360-degree view. It’s not just about the traditional audio. It’s about a complete experience that encompasses all aspects of media — video, social media, and even traditional broadcasting to create connections with audiences.
Ultimately, it’s about taking advantage of all the different ways that people consume media. By using those channels to create an immersive experience, you can take listeners beyond anything radio ever dreamed of doing.
Are you interested in starting your own podcast?
Here are some tips from the pros to get you started:
1. Be committed.
Podcasts take time to build, so you have to be in it for the long-haul to be successful
2. Do the work.
It takes much more than showing up and having a chat with your guest. Do the planning and research to ensure your podcast is great.
3. Have a vision.
Don’t just know what you want to say in your first episode — know what you’re going to say in your 21st episode.
4. Connect with fans.
Use social media to not only promote your podcast, but also interact with your fans and build a community of loyal followers.
5. Crowdsource your material.
Ask your fans what they want to hear, and you know you know they’ll want to listen.
6. Find your niche.
Content is king, but that content has to be different, unique, and engaging. Look for untapped areas of what interests you and see what’s missing in the marketplace.
7. Be diverse.
Include guests and co-hosts from different backgrounds, beliefs, genders, ethnicities, and walks of life from you. It will broaden who your show can connect with.
8. Try different things.
Then look at the numbers. Don’t be afraid to experiment and adjust until you figure out what works for you.
9. Be consistent.
Release new shows and content on a regular cadence. Let fans look forward to Tuesday afternoons (or whenever your new episodes go live).
10. Be a guest.
Go on other people’s podcasts. You’ll have access to their audience, and they’ll have access to yours. It’s mutually beneficial.
