Hello and welcome, I am trying something new and writing about how some industries make money and financial case studies. This first post is about the podcasting industry.
The word podcast is a mix from the words iPod and broadcast for that reason we will be taking a look at Apple and then podcasters themselves.
Before we do if you have any questions or industry suggestions please tweet me @supremerumham These articles are not investment advice for that reason I will hardly mention company names at all.
In the United States ad revenue from podcast were $314 million last year and will continue to increase each year ahead. This money was split among several different types of ads which are Direct response ads, brand awareness ads, branded content, and product placement. Direct response as being the largest with 63% of the market last year. Some podcasters also getting donations from their listeners as well.
Apple and other companies
Being that Apple came up with the word “podcast” it is not surprising they are a big presence in the market. The Apple podcast app accounts for 50% of all podcasts played in 2017. While this number is becoming smaller each year, it is still very significant. The podcast app and the podcasts are free on the app are free. The way Apple makes money from podcasts is by people using iTunes and collecting data or people buying Apple products to listen to the podcasts on the standalone app. This is different from other podcast host that charge a monthly fee, interrupt the podcast with ads, or place ads on the app or website.
As a podcast market continues to grow we will see a lot of change in the industry from how podcasters make money or consumers listen to them. Only time will tell.
Thanks for reading I hope you enjoy this post.
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