S&P Equity Research Rates Audible 'Sell,' Cites Podcasting Threat
S&P Equity Research Rates Audible 'Sell,' Cites Podcasting Threat
by , 2:15 PM EDT, May 25th, 2005
According to a news brief publishing on the Forbes magazine Web site, Standard & Poor's Equity Research has reiterated its "Sell" rating on Audible and commented that "podcasting constitutes a growing threat" to its business. While the podcasting ranks consist mostly of amateurs who create and distribute their own audio shows, larger companies and media outlets have joined the trend, which S&P thinks will "detract from interest in similar content from Audible that generally costs US$6.95 to $12.95 a month per download."
Audible emphasizes compatibility with Apple's iPod on its Web site, and Apple has supported Audible by selling its content on the iTunes Music Store, but Apple CEO Steve Jobs recently announced that iTunes 4.9 will offer features for finding, downloading and managing podcasts. Apple will also freely distribute what it deems are the best podcasts available; Mr. Jobs noted that advertising may pay for the endeavor in the future.
As The Mac Observer posted this article, Audible's stock was down over 3% to $17.05.
Observer Comments
Wed May 25, 2005 3:14 pm Subject: Ya could sell podcasts
QuoteMace wrote:
Audible is selling paid subscription.
Podcasting is distributing free downloads.
The content are different.
These paid subscription become paid podcasts in iTunes? Great. Good news toinvestors.
The content is different now, but podcasts could sell with the right content. What is the right content, I am trying to think of something.
Wed May 25, 2005 10:46 pm Subject: Apples and oranges ...
Audible primarily sells audiobooks, not "programs." One can buy a subscription to various radio shows (e.g., Car Talk) and specially-created programs (e.g., AudibleProops with Greg Proops). Some are free (e.g., Le Show). You **CANNOT** get those same paid programs via other podcasts, at least not legally. See
http://www.cartalk.com/Radio/Show/
for example. You can listen to Car Talk ONLINE (streaming Real Audio) free, but not as a podcast. The same is true for Your Mac Life (streaming QT online, but Audible has it via podcast).
It all depends upon what you want. Audible's subscription programs are ad-free, for example. Some are rather expensive, while others are cheap. Car Talk is $9.95/month for weekly access, Audible Proops is $4.95/month for the biweekly shows.
Some media sources are considering podcasts for a fee. (E.g., Rush Limbaugh, who charges $6.95/month, $49.95/year for the Rush 24/7 service--no wonder Rush is rich!
) Others host podcasts or allow an affiliate to provide podcasts free (e.g., Air America, Democracy Now, both of which have commercial-free podcasts).
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