The NYT reports today on efforts by Evan Williams, one of the original Blogger founders, and Noah Glass to mount yet another attempt at creating a digital marketplace: "For a Start-Up, Visions of a Profit in Pod-Casting." Odeo arises out of the recent fad of podcasting, but has broader (and more strategically sound) ambitions as well. The article notes that companies like Audible (which is also getting into the Podcasting business) are already booming because of "the rapid proliferation of iPods and other
handheld MP3 devices that are capable of playing digital audio files
containing news, music and talk radio, as well as an increasingly
diverse array of amateur productions that are more difficult to
categorize."
Most tellingly (and for those of us at Lulu this sounds awfully familiar), Williams explains that:
Odeo plans to base its business on the premise that the explosion of
digital audio content has created the need for a central place to find
relevant material and that there will also be a need for a market to
buy and sell "premium" content in much the style of the eBay online marketplace.
Odeo, noting that advertising is already an accepted component of
conventional radio, also plans to embed automatically generated audio
ads within the downloadable files.
Interesting that the gamble seems to be, once again, on free content with advertising (Google) vs. charging for content (iTunes, Lulu), although it's not clear to me whether or not Odeo plans to charge for downloading podcasts. When it comes to content, they seem to realize that people will create and publish it whether or not they make any money. In other words, creators care more about exposure than compensation, an observation that Chris Anderson echoes in his most recent Long Tail Post, "What About Producers?":
Finally, it's worth noting that commercial success is not the only (or even main) reason to be a Long Tail producer. Most authors write books not to get rich but to reach a readership, whether it be to enhance their academic reputation, market their consultancy, or just leave a mark on the world. The Long Tail effect may not pay their rent, but it will find them a bigger audience, and if what they're offering is really good it may be dramatically bigger.