Making Money from Content

I am an extremely avid podcast consumer (see my podcast listening lineup for 2010), and sometime podcast producer. I have completely stopped listening to over-the-air radio, and I now listen to podcasts whenever I can. All except one of my podcasts are free. The podcast I pay for is “Never Not Funny.” It’s a 90-minute podcast. You can get the first 20 minutes for free, or you can pay to get the entire podcast. I like the podcast so much that I pay for the full 90-minute version. To learn more about “Never Not Funny’s” business model, read or listen to my interview with the show producer, Matt Belknap.

Because I pay for the “Never Not Funny” podcast, I make sure that I always watch it (I pay an extra $5 to get the video feed). I’m paying about a dollar per show, but that’s enough to get me invested into the show that I feel compelled to watch it. That’s not the case for any of my other free podcasts.

I feel the same way about watching films I purchase and download from iTunes. Or music I purchase from iTunes. Or listening to music on the paid service MOG for which I also became a paid subscriber ($5/month).

When I pay for content, I’m compelled to consume it before content I can get for free.

But as we all know, even charging a nickel for content can be a barrier for consumption. Some may see this as dealing with two mutually exclusive issues:

• If people pay for content they’ll be compelled to consume it.
• If you charge for content it will be a barrier to consumption.

I see the ability to overtake these conflicting issues is by not scaring people when you charge for content. Instead, get people excited that you’re going to charge for content. And I believe you can do this by creating your own form of scarcity. Give away a portion of content for free that leads people to want to purchase the rest of it.

How do you charge for podcasts?

While iTunes has an app store, a music store, and a movie store, they don’t make it possible for podcasters to sell their podcasts. Podcasts within iTunes must be completely free. That doesn’t mean you can’t sell your podcasts, you just can’t do it completely within the four walls of iTunes. You have to go outside and create a personalized RSS feed that requires a username and password for access. You can manage that through services like Premiumcast (read and listen to my interview with Premiumcast’s founder, Paul Colligan).