Peter Kafka has a new article out on Recode about venture capitalists’ reluctance to invest in podcast companies. The reasons they cite all boil down to the podcast industry still being tiny. But, as I explain in this video, that’s the perfect reason to invest; the podcast industry will see nothing but growth over the next several years, and now is the best time to get in on it.
Podcast industry watchers love to decry the lack of social media features in most major podcast apps, but there’s actually no market for such a tool. In the below video, I explain why podcasting is a longform medium and should be compared to mediums like books, TV, and movies — all of which don’t have mainstream social apps attached to them.
Two years after Jamie Golden and Knox McCoy launched Popcast, a pop culture podcast they host once a week, they still couldn’t attract high quality advertisers despite the show’s loyal and growing audience. “We found the advertisers who were approaching us weren’t quantifying our value in any kind of tangible way,” said Golden in an interview. “And yet we had these fans who would just go to bat for us. Whatever we asked of them, they would do, and they were supportive and stayed consistent. We never saw a decrease in downloads, not one month we’ve been in existence. It’s been growth, growth, growth.”
In November 2006, Mignon Fogarty’s phone rang. She didn’t recognize the number, but rather than letting it go to voicemail, as many of us do with unknown callers, she picked up. On the other end of the line was John Sterling, the president and publisher of Henry Holt, an imprint of Macmillan. He’d seen a recent item in the Wall Street Journal about Grammar Girl, a hit podcast Fogarty had launched a few months prior that was already receiving nearly a hundred thousand downloads per episode. “He originally called me to talk about doing a book deal,” she told me. But she had already set her sights much higher.