Podcasting goes from indie to mainstream overnight
By Michelle Kessler, USA TODAY
Jul 13, 2005 - Mainstream media companies are starting to dominate podcasts - topping in popularity the quirky independents that created the trendy online radio genre. Podcasts from ESPN, CNN, ABC News and the TV show Queer Eye are among the most popular this week on iTunes, Apple's download site.
That's a huge change. Until recently, podcasts were largely pirate-radio-style broadcasts, often produced by one person on a home PC. Now, podcasts are anchored by such staid celebrities as Rush Limbaugh and Ted Koppel.
Podcasting "went from underground to mainstream overnight," says Ted Schadler, digital media analyst at Forrester Research.
Customers signed up for more than a million free podcast subscriptions in just two days when iTunes started featuring them last month. That includes independent podcasts, such as The Dawn and Drew Show. But the soaring popularity of mainstream podcasts on iTunes may make it tough for indies to find an audience - and profitability.
"Apple and the mainstream media are making a monumental mistake," says Richard Bluestein, who podcasts on YeastRadio.com. They're "repackaging the same boring, heartless and anti-human garbage" instead of focusing on alternative programs, he says.
Podcasting began appearing last year, when its pioneers figured out that talk radio programs could be downloaded with a click of a mouse, just like digital music files. Podcasting gets its name from Apple's iPod digital music player.
Some early podcasts, such as Rob Greenlee's WebTalk Radio, were digital versions of existing radio shows. But most were new. Podcasting is open to anyone "with a laptop and a $6 microphone," Greenlee says. Now the low costs have attracted:
• Los Angeles public radio station KCRW, which podcasts 22 shows it already produces, says General Manager Ruth Seymour. The podcasts are attracting new listeners, which could lead to more donations for the publicly supported station, Seymour says.
• Bravo, the network behind makeover TV show Queer Eye. It strips audio from TV vignettes and turns them into a popular podcast called Hip Tips.
• Disney, which has taken some of the videos on its Web site, stripped out the audio, and repackaged them as podcasts. It also plans to offer podcasts from its regular radio stations, called Radio Disney.
The conflict between big and small podcasters is expected to intensify as interest grows in advertising, subscription fees and other ways to make money. But Michael Rundle, a Cambridge University student who hosts a music podcast, insists there is room for everyone. "Just because some shows might end up with a smaller audience than ABC News, the genius of podcasting means they can still survive," he says.
Apple quarterly profit surges on iPod sales
SAN JOSE, Calif. (AP) — 7/13/2005 - Apple Computer (AAPL) saw sales jump 75% in its latest quarter — and net income more than quadruple — as sizzling sales of iPod music players led the company to what CEO Steve Jobs called its best quarterly performance.
For the three months ended June 25, Apple's profit rose to $320 million, or 37 cents a share, up from the $61 million and 8 cents a share the company reported in the year-ago quarter. Sales surged 75% to $3.52 billion from $2.01 billion last year.
Analysts surveyed by Thomson Financial expected the Cupertino, Calif.-based company to report earnings of 31 cents a share on revenue of $3.34 billion.
The company shipped 1.2 million Macintosh computers and 6.2 million iPods, the overwhelming leader among digital music players, during the quarter. The numbers represents a 35% increase in Mac sales and more than a six-fold jump for iPods from the third quarter in 2004.
The company said international sales accounted for 39% of the quarter's revenue. "We are delighted to report Apple's best quarter ever in both revenue and earnings," Jobs said. "The launch of Mac OS X Tiger has been a tremendous success, and we have more amazing new products in the pipeline."
For the fourth quarter, Apple predicted earnings of 32 cents a share on revenue of $3.52 billion. Analysts are looking for profit of 33 cents a share on sales of $3.6 billion.
Apple shares rose 11 cents to close at $38.35 Wednesday on the Nasdaq Stock Market, then added 74 cents in the late session. Apple released the income report after the close of regular trading.