04 Jul 2005
Apple's recent launch of iTunes 4.9 will help to propel podcasting into the digital media mainstream, industry watchers have predicted.
The software update allows users to subscribe, manage and listen to podcasts which allow files, mostly audio, to be published on the internet. Apple will also make more than 3,000 podcasts available for free download.
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According to a newly published analysis by Gartner, Apple's move will strengthen its competitive position by allowing consumers to better manage podcasts as well as making the on-demand technology more attractive to internet content providers.
"This announcement, together with Apple's agreement with Audible.com, shows that the company is quickly making life difficult for its competitors," stated Gartner analysts Allen Weiner and Michael McGuire.
The principal features of iTunes 4.9 which will boost podcasting are its listing of podcasts as a separate file directory on iTunes Music Store and on the iPod, which makes it easier to separate podcasts from music files.
The software also allows users to aggregate podcasts on iTunes, which remains the leading online music site.
Gartner explained that there are three elements to podcasting: creation, distribution and playback.
"Apple has covered the last two elements fairly well. Its efforts to create revenue from podcasting follow the same strategy it has applied to online music: extend the value of the iPod (the real revenue generator) by creating a content distribution site that meets the consumer's growing appetite for audio content, " the report stated.
According to the analyst firm, advertising opportunities for podcasts are possible in the form of sponsored podcasts and inserted audio advertisements. To enable this process, Apple could create a publishing tool that would allow content creators to integrate advertisements.
However, Gartner suggested that Apple's decision to become a "gatekeeper" by employing an editorial staff to review podcasts before they are offered on iTunes Music Store could be criticised by purists who believe that the grassroots appeal of podcasting will be corrupted.
"The criticism is inevitable, but irrelevant. The iTunes directory offers the consumer the capability to download any properly tagged podcast anywhere on the web," Gartner stated.
The analyst firm advised content providers to "get aggressive" in offering podcasts and not let return on investment be an immediate concern.
Gartner added that technology allowing consumers to pay for podcasts, as well as advertising insertion tools, will soon be available.
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