Audio is Exploding: Why You Should Start a Podcast Now
Clubhouse may have fizzled, but Audio is still the Next Frontier for Entertainment.
Clubhouse may have fizzled, but Audio is still the Next Frontier for Entertainment.
ClubHouse, once considered the hottest startup of 2020, has lost tremendous tailwind. Looking at Google Trends, Clubhouse interests have fizzled significantly.
But does this mean it is the end of Audio Entertainment?
I think this is just the beginning. Video/image is still the king, but Audio is absolutely booming. So it may be worthwhile to start considering Audio as a medium if you are a content creator.
Speech as a [user interface] is rapidly on the rise. So I think audio is going to be titanically important. — Marc Andreessen
Why Audio?
For each information medium, there are pros and cons for both the user and creator. Below are the factors worth examining:
Information: According to William C. Bradford in the Law Teacher, 65% of the population is visual learners, 30% verbal, and 5% experiential learners. Likewise, the amount of information that can be conveyed in a short period goes in the order of video → audio → text (high to low). Video also can grasp the short-span attention of modern consumers. On the other hand, text leaves much more room for imagination for the user to fill. This may be beneficial for a particular group of people that enjoy the process of building up their own thoughts.
Intimacy: Conveying the connection between the creators and fans are also essential. Voice intonations and facial expressions are crucial to communication and building a relationship. The intimacy that can be conveyed between creators and fans goes in the order of video → audio → text (high to low).
Investment (for creators): To produce high-quality video content, you need a high-def camera with professional editing software, which can be pretty expensive. Also, it takes hours to create a 10-minute video. Podcasts and audio content are easier to create with merely a solid microphone required. Finally, text is the easiest to set up. So the investment required is in the order of text → audio → video (cheapest to most expensive).
Ease of Consuming: This is the most critical factor considered by people who believe audio is the next frontier of investment. For video content, you need to give your full attention to absorb the information. You need to watch the screen and listen to the audio. For text, you need to give your attention to the screen to absorb it. In this regard, audio is considered the most accessible as you can do other things while consuming the content. The ease of consuming goes in the order of audio → text → video (easiest to hardest).
In conclusion, video gives the most information and intimacy, making it the king of content creation. However, audio is booming because it provides a certain level of information and intimacy with the most accessible form of consumption for the user.
And the answer is: they’re at work. They have this Bluetooth thing in their ear, and they’ve got a hat, and that’s 10 hours on the forklift and that’s 10 hours of Joe Rogan. That’s a big deal. — Marc Andreessen
Audio Exploding
With the demise of Clubhouse, it is natural to disregard audio entertainment.
However, audio is exploding, with more than a third of the population actively listening to podcasts.
With such a vast active base of listeners, large corporations have not shied away from investing in podcast advertising. As a result, podcast advertising revenue has grown at a CAGR of 51% and is estimated to cross the $1bn mark this year. The explosive trajectory is expected to continue.
As a result, top podcasters have been making a ludicrous amount of money. For example, Joe Rogan recently signed an exclusive deal with Spotify, believed to be worth $100mn.
Also, behind the scenes, large tech corporations have been ramping up on M&As, product and content development to revamp their audio entertainment platforms.
Spotify
Recent acquisitions and development in Spotify’s platform symbolize their strong commitment to audio.
“audio-not just music- would be the future of Spotify” — Daniel Ek, CEO of Spotify
2019/10 Acquisition of Gimlet and Anchor (platform for podcast creation).
2020/02 Acquisition of Ringer (content creation)
2020/10 Acquisition of Megaphone (monetization on audio ads)
2021/3 Acquisition of Locker Room (live audio streaming)
2021/4 Launch of podcast subscriptions. Three monthly pricing options from $2.99, $4.99, $7.99
2021/6 Launch of Greenroom (live audio streaming app)
Other Large Corporations
Spotify is not the only company looking to monetize and gain a share of the audio content market. Large tech corporations have been investing and started new services in the past three months!
Apple: Acquired ScoutFM (podcast curation) service in 2020. They launched Apple Podcasts Subscriptions worldwide on 06/15/2021, which starts at $0.49/mo. per channel.
Amazon: Acquired Wondery (content creation) service in 2020. They started podcasting services on Amazon Music in 09/2020 and are looking to develop original content with Wondery.
Twitter: Acquired Breaker (podcast app) in 2021. They have launched Twitter Spaces, which easily allows top Twitter influencers to start live talk shows.
Facebook: Announced that they will “bring social audio experiences to Facebook” in 04/2021. They launched a Clubhouse alternative called Live Audio Rooms and Podcasts on 06/2021.
What can you do?
As you can see, more consumers are flocking to audio entertainment and the money circulating in the ecosystem is exponentially rising. The industry is absolutely hot, so what can you do?
Now anyone can be a podcaster — celebrities, YouTubers, moms, influencers, etc. Even if you don’t have a listener base, you can sign up on Anchor, start a podcast and start monetizing immediately.
You can monetize your podcast through advertisements by putting ad breaks with a specific CPM. With about 1,000~3,000 downloads, you can make about $100/episode. If you get to about 35,000~60,000 downloads, you can make about $1,000~$3,000/episode. More information can be found on Shelby Church‘s video here.
One basic tip given by Spotify is to decide on a format and stick to it. Consistency is vital especially for podcasts because the listeners are multi-taskers. Another is to find a specific niche that garners sticky and firm fans.
On YouTube, the competition is fierce. Despite getting subscribers and views, the amount of money distributed to creators on Youtube is meager compared to podcasts. In comparison, the audio landscape is still evolving, so why not grab a microphone and start your podcast?
Personally, I need to get a better voice before considering.