Are podcasts making money? Some are. But in order to sustain growth, experts say there needs to be a new business model for podcasts.
“It’s estimated that approximately 90% of podcasters have trouble generating podcast revenue and lose money producing their podcast,” the Podcast Host reported.
But podcasters are looking to change their business model. Earlier this month, Luminary, a venture-backed app that has raised $100 million, launched an ad-free podcast model that will cost $7.99 per month. WNYC podcast Note To Self will be re-launching on Luminary.
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“As a creator, it’s hard to get a production off the ground if you don’t know you have a steady income,” said Manoush Zomorodi, host of Note To Self and now co-founder of Stable Genius Productions, told Digiday. “Sponsorship is keeping us afloat, but it’s not enough to sustain a growing team.”
In fact, sponsorships earns very little money for podcasts.
“Imagine if every new business owners started a business with the same goal as podcasters. For every 1,000 people that came into contact with their business they would earn $20.00. How many of these businesses would you expect to thrive or even survive? Not many, right?,” the Podcast Host reported. “For the vast majority of podcasters, working on the $20 per 1,000 subscribers, the end result will be pizza money. Not a viable business model.”
So how can podcasts survive and make money as well?
“For anyone running their own business, the concern is long-term financial stability. [Stable Genius Productions ] is looking beyond podcasts. We’ve learned more into topics like tech, society, business, culture, work and ethic. I want Stable Genius to be a clear entry point for people, whether they want a guide on how to deal with kids and screens or understand ethical investor models. Stable Genius is going to be about podcasts and, potentially, newsletters,” Zomorodi said.
