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Forecasts: U.S. Podcast Users to Hit 60 Million by 2010; Tool Market to Reach $400M

Forecasts: U.S. Podcast Users to Hit 60 Million by 2010; Tool Market to Reach $400M

by , 8:00 AM EDT, June 17th, 2005

Some 60 million Americans will be listening to podcasts by 2010 and the demand for tools and services to create podcasts will reach US$400 million within the next year, two analysts are predicting.

The consumer technology research company, The Duffusion Group, reports the demand for time-shifted digital audio files, or 'podcasts', is expected to grow from less than 15% of portable digital music player owners in 2004 to 75% by 2010. TDG's report suggests that between 2004 and 2010, the use of podcasting among U.S. consumers will enjoy a compound annual growth rate of 101%.

"Consumers were already accustomed to downloading music for playback on portable devices – this is a well-engrained activity that precedes online digital music," said Marc Freedman, contributing analyst with The Diffusion Group. "However, the downloading of online 'audio blogs' for portable on-demand consumption is certainly new. Yes, the roots of podcasting lie in non-commercial amateur blogging, but podcasting's non-commercial status is changing as more businesses begin to find creative ways to use this new delivery medium to push audio content."

Mr. Freedman said examples of how Podcasting is catching on is the early adoption of the technology of by media names such as NPR, ABC and NBC, Infinity Broadcasting, and Clear Channel Radio, many of whom are already offering programming via downloadable Podcasts.

In a related report, Alex Nesbitt, president of Bella Ventures Inc., is predicting the market for podcasting tools and services will reach $400 million, "in the near future." The business consultant also said podcasts of "enduring content" are likely to become valuable as archives.

Capturing university lectures and speeches will drive growth, he added. "Narrowly focused, but very high-value content that is similar to high-priced subscription newsletters, such as investment research, should also have strong commercial appeal," he added.

Mr. Nesbitt predicts advertising will vecome a major factor in podcasting, but also believes being able to accurately survey usage and audience demographics will prevent many big names advertisers from trying out the new medium.

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Guest
Subject: Waiting for "Reality Check"

Where's that [bad word] now? What negative $#!% could you possibly say to this? Dick.

[Editited for inappropriate language - JB]

Close Name:Guest
Subject: SORRY PC WEENIES...

BUT APPLE ONCE AGAIN IS KICKING YOUR SORRY ARSE'S IN INNOVATION, SOFTWARE AND HARDWARE!

IPOD RULES THE MUSIC SCENE AND EVEN DELL WANTS TO SELL OS X!!

ITS OK, WE FORGIVE ALL OF YOU DILBERTS FOR THE LAST 2 WEEKS OF BASHING!

come join us, it IS your destiny.

Close Name:DawnTreader -   TMO Staff Posts: 15039 Joined: 04 Jan 2002
Subject:

I like the idea of recorded content for iPods. The question is: How does Apple capitalize on the opportunity?

Close Name:Guest
Subject: podcast subscriptions

to answer how Apple will capitalize...

iTMS is the perfect content distribution provider. Apple will likely use it's position in the MP3-player market as leverage to license out iTunes to 3rd party content providers interested in subscription-based podcasts. XM and Sirius are great examples of existing companies that could take advantage of podcasts, but do not currently have the means (financially, technologically, or otherwise) to handle podcasting alone.

Podcast subscriptions are analagous to the current iTMS; Apple sells songs owned by record companies and keeps a small percentage of sales.

Close Name:Guest
Subject:

not to mention the potential increase in iPod user-base as an added incentive to Apple. Not everyone has a large collection of CDs to rip and manage on an iPod. Many listeners are more interested in talk radio.

Close Name:gslusher Posts: 2088 Joined: 13 Nov 2002
Subject: Sirius has Podcast show

Quote
Guest wrote:
to answer how Apple will capitalize...

iTMS is the perfect content distribution provider. Apple will likely use it's position in the MP3-player market as leverage to license out iTunes to 3rd party content providers interested in subscription-based podcasts. XM and Sirius are great examples of existing companies that could take advantage of podcasts, but do not currently have the means (financially, technologically, or otherwise) to handle podcasting alone.

Podcast subscriptions are analagous to the current iTMS; Apple sells songs owned by record companies and keeps a small percentage of sales.


First, the possessive form of "it" is "its," not "it's." That used to be taught in the fourth grade.

Second, Sirius has started a show for podcasts.

http://www.sirius.com/servlet/ContentServer?pagename=Sirius/Page&c=FlexContent&cid=1115038974898&flash=flash

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