COMMENT
The Joy Of Podcasting

By David Kuo (TMFDragon)
January 30, 2006

Does the idea of listening to this article whilst skipping to work rather than reading it on your PC interest you? If so, then the day when that becomes a reality may not be so far away through the technology known as podcasting.

But what exactly is a podcast?

Before 2004, the word podcast didn't even exist. However today, podcasts are almost as ubiquitous as iPods themselves. Interestingly though, podcasts have nothing to do with iPods at all. The name podcast only came about because iPods became popular at about the same time that early adopters started to make audio broadcasts over the Internet. They could just as easily have been called MP3casts or AudioCasts, but for now we're stuck with podcasts.

In a nutshell, podcasts are simply audio files that are transmitted over the Internet. What makes them special is that they can be downloaded onto your PC, and subsequently uploaded onto MP3 devices so you can listen to them whenever you want. The number of podcasts is growing rapidly, and in time there could be as many podcasts as there are subjects that people want to listen to.

One possible reason why podcasts have grown in popularity is that podcasting is not governed by the same rules as commercial broadcasting. So there is no need to apply for a broadcasting licence. Another reason may be that it is relatively inexpensive to produce, and they do not require huge amounts of investment or plush studios. Indeed, here at The Motley Fool, we're looking into producing our very own podcasts in the near future.

But just exactly how podcasts will affect the media world is a little unclear right now. It is possible that commercial radio may be one area that has a lot to lose. For instance, today many car owners can connect their MP3 players to their in-car stereos. Consequently, many drivers listen to their own choice of downloaded programmes rather than be governed by a broadcaster's schedule.

Interestingly, Virgin Radio, which is owned by SMG (LSE: SMG), plans to use podcasting to distribute content that may otherwise be banned from airing in its mainstream broadcasts. The company hopes that its "near to the knuckle" programmes may prove to be a new revenue stream, though turning podcasting into a cash cow will be tough.

In this regard, if podcasting takes off a big way then advertisers may need to find new ways to get their message across to consumers. So, as podcasts grow in popularity at the expense say, of traditional media, advertisers may need to identify new advertising strategies. One obvious path may be to sprinkle advertisements within a podcast or for companies to sponsor entire popular podcasts.

As I see it, podcasting poses both an opportunity and a threat to players in the media arena. But what is not in doubt is that podcasting may lead to a real shift in what we listen to, when we listen to it, and how we listen. And that can't be a bad thing.