Industry Views

Pending Business: Being Realistic About Podcast Revenue

By Steve Lapa
Lapcom Communications Corp
President

It looks like the podcast business is hitting those ever-present speedbumps.

No, I am not predicting a demise. I’m just asking why there weren’t a few more hardball questions.

If you sell or manage with eyes wide open, you’ve already read what the February 15 New York Times article chronicled. The cutbacks, drops, and hiring freezes hitting the double-digit-growth podcast business has some in the radio business saying, “Told ya so.”

Who has the chutzpah to say that to Tom Brady and Michael Strahan of Religion of Sports, or Michelle Obama of “The Michelle Obama Podcast?” When your bank account is on fumes, you speak the economic truth. The formula of star power driving unique audio content didn’t instantly convert to super-sized audience levels attracting super-sized revenue. What did VOX, Spotify, Amazon, NPR and other well-respected players miss?

— Never assume, (because assuming…) An out-of-the-box assumption listeners would pay for content to create a separate income stream, didn’t really take. Even the most aggressive marketer would think twice before assuming that listeners generating millions of downloads of free podcasts would suddenly pay to listen. Maybe a select few passionate followers would, but could you change the historic perceived value of the masses? When it comes to paywalls for play, be sure to test, adjust, and re-test before you project income.

— Ad sales sell out levels. A typical podcast has about a quarter of the inventory available in a typical hour of most news/talk and sports talk programs. Yet despite podcasts with limited inventory and higher CPM for host-read ads inside the podcasts, the projections from those well-respected companies tanked. The reason is elegantly simple. Too much podcast inventory chasing too few dollars.

— It’s the economy, stupid. Thank you, political strategist James Carville. The story goes the phrase was on a sign in Bill Clinton’s campaign headquarters and helped Clinton beat Geroge Bush in 1992. Did any of the gurus consider the economy?

— Who would have thought print newspaper sales have something in common with podcasts? Did anyone consider the impact of endless ad inventory becoming a commodity despite celebrity content? Never easy to predict which celebs will convert from the big screen or TV to podcast audio.

I had the privilege of producing cast members of Discovery’s “American Chopper” in a 39-episode podcast series. Even those crazy motorcycle dudes were challenged bringing their millions of TV and online fans to the podcast world. Hindsight is 20/20. Let’s never stop learning so we can always aim for higher earnings.

Steve Lapa is the president of Lapcom Communications Corp. based in Palm Beach Gardens, FL. Lapcom is a media sales, marketing, and development consultancy. Contact Steve Lapa via email at: Steve@Lapcomventures.com

Front Page News Industry News

Thursday, October 6, 2022

WABC, New York’s Bernard McGuirk Dies from Prostate Cancer at 64. Longtime New York City radio personality Bernard McGuirk – most recently co-host of the “Bernie & Sid” show on WABC, died on Wednesday evening (10/5) after a battle with prostate cancer. WABC calls McGuirk “the brains of the 77 WABC ‘brains and muscle’ team of ‘Bernie & Sid in the Morning.’” McGuirk had been with WABC since 2007 as executive producer of the “Imus in the Morning Show,” where he was also featured as the program’s quick-witted, on-air contributor. McGuirk added color to local and national news updates with his own take on the serious and not-so-serious news of the day. McGuirk was with the “Imus In the Morning” show since its latter days at WNBC Radio. He made the move with Imus to WFAN, New York in 1988 and remained there until 2007. McGuirk was also part of the Imus team when the show became nationally syndicated in 1993. WABC says that McGuirk, who had been co-host of its “Bernie & Sid in the Morning” with Sid Rosenberg since April of 2018, helped bring WABC back to the top in New York, reaching #1 in share of the 12+ audience in morning drive in the August Nielsen ratings. The station says there will be a tribute and moment of silence for McGuirk on 77 WABC today, during the morning drive program. A special tribute for McGuirk, including memories and thoughts from the WABC staff, will air on Tuesday, October 11. Red Apple Media Group chief John Catsimatidis says, “We are all devastated by the loss of Bernie. He was a true New Yorker whose talent and intelligence propelled him to the top of New York morning radio. He had incredible insights on local, national, and world news that his listeners respected. He will be missed by everyone at WABC and his fans around the world.” Sid Rosenberg says, “Bernie was my partner and my friend. He was always the smartest guy in the room, and I was fortunate to be the guy next to him. I know our listeners join me in grieving the loss to radio and to New York.” Born in the Bronx in 1957, McGuirk was a graduate of the College of Mount St. Vincent. He is survived by his wife Carol, and their two children, Brendan and Melanie.

Tavis Smiley Is This Week’s Guest on Harrison Podcast. Independent radio station owner/operator and longtime multi-platform media commentator Tavis Smiley is this week’s guest on the award-winning PodcastOne series, “The Michael Harrison Interview.” Smiley’s accomplished, three-decade career includes having hosted shows and making appearances on such national television platforms as BET, CNN, ABC, and PBS, as well as radio stations KABC and KGFJ in Los Angeles. He’s a prolific author and dynamic purveyor of the African American perspective in the media with his current radio focus representing the majority liberal side of the nation’s diverse black population. In 2021, Smiley’s company, SmileyAudioMedia, Inc., acquired a radio station in Los Angeles – the former hip hop legend KDAY, and turned it into a brand-new station and format launched on Juneteenth of that year – KBLA Talk 1580 – where he’s assembled an outstanding air staff, including himself, with the passionate mission of “unapologetically” serving people of color and political progressives. Harrison states, “Tavis Smiley is to be applauded for bringing two rare but extremely important entities to America’s talk media universe – an African American-owned-and-operated major market station as well as a commercial talk radio outlet that actually embraces liberalism. Putting his money where his mouth is, his belief in and support of radio itself is needed and inspirational.” To listen to the podcast in its entirety, please click here.

Howard Stern Praises Old Boss Bill Nosal Upon News of His Passing. Legendary radio personality Howard Stern had high praise for former longtime WCCC, Hartford program director Bill Nosal, who died recently at age 77. Stern said on his SiriusXM program that Nosal hired him in a move that brought Stern from a small station to a top 50 market and would give him the visibility needed to become the superstar that he is. Stern said his first audition for Nosal didn’t go well, but he got a second interview anyway. Stern said, “Either he was a genius like on the level of Lorne Michaels … or he was a complete moron who had no idea what he was doing. I choose to think he was a genius. He saw a diamond in the rough in me [when] no other person did.” Nosal would eventually leave WCCC and the radio programming business to launch his own advertising agency. You can read Stern’s comments here.

Report: Audacy Exploring Sale of Cadence13 Podcasting Unit. According to a piece by Axios, Audacy has retained investment firm Evolution Media Capital to explore the sale of its podcast studio Cadence13 in order to “alleviate some of the company’s debt as it faces financial challenges.” The story notes that in addition to Cadence13, Audacy has acquired Pineapple Street Studios, and podcast monetization platform Podcorn. While Audacy is not commenting on the matter, the Axios piece notes that on Audacy’s most recent quarterly conference call, company president and CEO David Field stated that the company’s podcast growth is coming from its local sports and news radio stations – as well as Audacy’s new sports podcast studio 2400Sports. The piece concludes that Audacy is shifting its podcast strategy to programs “based on its own intellectual property from its radio [holdings], rather than bidding on premium podcasts to distribute, which is Cadence13’s specialty.”

Triton Digital Releases August 2022 Streaming Ranker. The August 2022 Streaming Metrics Ranker from Triton Digital is released. Triton ranks streaming publishers based on Average Active Sessions or AAS that represents the average number of sessions at any point in time in the reported time period. iHeartRadio remains ranked #1 with 305,156 AAS. Other radio-related companies making the ranker include: NPR Member Stations at #2 (71,378 AAS), Audacy at #3 (64,858 AAS), Cumulus Streaming Network at #4 (42,893 AAS), Beasley Broadcasting Corporate at #7 (18,144 AAS), Hubbard Broadcasting at #8 (15,154 AAS), and Salem Communications at #10 (8,871 AAS). You can see the complete ranker here
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TALKERS News Notes. The newest podcast from Newsweek is “The Kristal Knight Show,” hosted by Knight, whom the news organization calls “a leading voice on the progressive left.” She most recently served as the political director for Priorities USA, a Democratic super PAC, during the 2020 election cycle. Knight says, “I have worked on elections across the country in big cities and small towns. People vote with their party when their party reflects their values, but if their values aren’t reflected, they either don’t vote or vote third party. The Democratic Party today is bifurcated and on ‘The Kristal Knight Show,’ we want to present both sides in this ‘interparty debate,’ so people can decide for themselves what the party truly stands for at this juncture.”…..The board of directors of the New York State Broadcasters Association announces that Michael Strahan is named its Broadcaster of the Year for 2022. Strahan currently co-anchors ABC’s “Good Morning America.” During the NFL football season, he serves as an analyst of “FOX NFL Sunday,” for which he received a 2019 Sports Emmy Award nomination for “Outstanding Sports Personality – Studio Analyst” and a 2020 Sports Emmy Award nomination for ‘Outstanding Studio Show – Weekly.” Strahan also hosts the top-rated primetime game show favorite “$100,000 Pyramid” on ABC…..ESPN and host and commentator Bomani Jones have agreed to a new contract extension. Jones will continue to lead his popular ESPN Podcast, “The Right Time with Bomani Jones,” three times per week. Jones will continue to make regular guest appearances across ESPN Radio’s sports talk programming. He will also continue to be a key contributor across ESPN’s television studio lineup, including “SportsCenter,” “First Take,” “Pardon the Interruption” and more. Jones says, “I’m very happy to continue ‘The Right Time’ with ESPN. I remain indebted to everyone who has worked to build the podcast, particularly my producer Gabe Basayne.”…..SiriusXM announces that Dave LaGreca, the lead host of the pro wrestling show “Busted Open,” signs a new multi-year extension with the company. LaGreca says, “I am very happy to cement my relationship with SiriusXM. The platform will continue to be the home for ‘Busted Open’ and I appreciate every SiriusXM team member who has made the show a success.”

Russia-Ukraine War, Mar-a-Lago Documents Case, DACA Ruling, Biden Visits Florida/Ian Aftermath, The Economy/OPEC Decision, Midterms/2024 Presidential Race and ‘Rust’ Settlement Among Top News/Talk Stories Yesterday (10/5). The annexation of parts of Ukraine by Russia’s Vladimir Putin and his attacks near the Zaporizhzhia nuclear plant; the legal battle over former President Donald Trump’s storing of classified documents at Mar-a-Lago; an Appeals Court rules that the DACA – that provides a path to citizenship for undocumented immigrants – is illegal; President Joe Biden visits the destruction in Florida from Hurricane Ian and the search for missing residents; the high rate of inflation, financial markets activity, and OPEC’s decision to cut oil production; the November midterm elections and speculation over the nominees for president in 2024; and Alec Baldwin settles with the family of the cinematographer killed on the set of Rust were some of the most-talked-about stories on news/talk radio yesterday, according to ongoing research from TALKERS magazine.