Nieman Foundation at Harvard
HOME
          
LATEST STORY
Vox’s video about Chechen leader accused of torturing gay people is being spammed with dislikes
ABOUT                    SUBSCRIBE
June 7, 2016, 10:25 a.m.
Mobile & Apps

Hot Pod: Is the Stitcher deal a step toward a closed podcast ecosystem?

Plus: Midroll’s CEO steps down, Malcolm Gladwell goes audio, and how voice assistants (Siri, Alexa, Cortana) could impact NPR’s drive time programs.

Welcome to Hot Pod, a newsletter about podcasts. This is issue seventy-six, published June 7, 2016.

Big moves at Midroll Media and EW Scripps. Okay, two big things from Midroll:

(1) E.W. Scripps, the parent company of Midroll Media, has acquired Stitcher, the podcasting app that’s widely considered to be the most popular alternative to the default Apple podcast app, for $4.5 million in cash. According to the Wall Street Journal report on the move yesterday, Stitcher will now operate under Midroll, with the former’s dozen-or-so employees being transferred onto Midroll’s payroll. Stitcher previously operated under Deezer, the French streaming audio company, after the latter acquired it for an undisclosed sum in October 2014. Stitcher had been quiet in terms of new developments ever since.

Acquisition talks started in earnest in early January, Midroll’s vice president of business development Erik Diehn told me over the phone yesterday. “It’s one of those things where serendipity drove the whole process,” he said, adding that both companies had compelling strategic reasons for the acquisition. In a separate call, Midroll CEO Adam Sachs provided clarity on this point: “Stitcher, as we know it as a podcatcher, is the second most popular podcast player in the world, and there’s a lot of value in there right off the bat,” he said. “But there are a lot of other pieces that are also really valuable, like the fact they come with a strong technology team.” Sachs pointed out how Midroll’s technology team has up until this point been fairly small, a state of affairs that complicates the fact that the company is increasingly pushing deeper into initiatives that require a lot more tech talent, like its premium subscription app Howl.

Speaking of Howl, it remains unclear how Stitcher will affect that particular piece of the company’s business. Diehn told The Wall Street Journal that at some point, the apps will “intersect,” and he told me that any plans for such intersection is TBD. “One thing we don’t want to do is disrupt Stitcher, and we don’t want Stitcher to disrupt Midroll,” Diehn said. He further added that Midroll aims to leave Stitcher’s role as a provider-agnostic platform intact, in that it will continue serving users podcasts regardless of where they come from. “We won’t turn it into a walled garden, we’re leaving ads intact, and you won’t start seeing a giant feed of Comedy Bang Bang and Lauren Lapkus and the occasional Midroll show,” Diehn said.

The acquisition met some criticism, however, particularly from Overcast app creator Marco Arment and prominent tech blogger John Gruber, both of whom are strong voices in the podcasts-as-extension-of-the-open-web contingent of the ecosystem. They highlighted Stitcher’s nature as a proprietary platform, whose possible dominance — combined with some suboptimal elements of the platform’s agreements with creators — will lead to a closed ecosystem that’s bad for both creators and consumers . Both posts are worth the read (you can find them here and here). Midroll’s vice president of sales and development Lex Friedman tweeted his disagreement, of course, and promised a more substantial rebuttal in a blog post to come.

All right, so there’s that, but then there’s also the bombshell that…

(2) Adam Sachs, the company’s CEO, is stepping down. Sachs has been the CEO of Midroll since June 2014, taking over from Jeff Ulrich, one of the company’s original founders. He shepherded the company through its acquisition by Scripps in July 2015 for $50 million. Previously, Sachs was the co-founder of Stepout, a dating app acquired by IAC in September 2013.

Sachs first announced his departure to the company in an email sent out last Tuesday. “The truth is that I’ve been running a startup (Stepout and then Midroll) for nearly a decade and that’s exhausting!”, he wrote. “Still, at my core, I’m an entrepreneur. I still have the fire in my belly to build companies.”

According to the note, he will remain at the company for another week, after which he will spend another month on a consulting basis to aid with the transition. There is no clear successor or succession plan in place, though Diehn and Friedman are expected to take up the brunt of Sach’s managerial responsibilities. Sachs told me that a replacement might not take place any time soon, but added that he believes the company has a strong enough management team to handle the interim.

He has no idea what his next move will be, or so he tells me.

As for The Wolf Den, the company’s podcast about the podcast industry, there is also no clear successor in line. Though, from what I hear, Friedman and chief content officer Chris Bannon are campaigning hard for the role.

Highlights from Hivio. I spent the better part of last week in Los Angeles, checking out a digital audio conference called Hivio. The conference drew a quirky mix of commercial radio, public radio, online audio, podcast, and assorted media types, and though it wasn’t immediately clear who, exactly, the audience was meant to be, I found the dynamics involved in the hodgepodge nonetheless informative. Many of these worlds have thus far kept each other at arms’ length, even as some grow more prominent and others begin to question their foundations, and as all these different digital audio sectors continue down what I’m fairly convinced is a collision course, it was great to get an early preview on how everyone will deal with each other.

Anyway, the conference programming drew out a lot of information — and even more rote talking points — and you can check out full recaps elsewhere, but here are a few things that stood out to me:

One more thing: It was interesting to see a few commercial radio executives cite ZenithOptimedia’s podcast ad-spend projection — about $36.1 million in 2016 — when discussing the medium’s emergence in relation to their own businesses on-stage. Since that projection was first published some months ago, I’ve heard several podcasting executives vehemently dispute it in private, typically saying something to the effect of “if that’s the number, then my company makes up 30-40 percent of that.” Granted, that retort is totally expected, but I’m inclined to agree just intuiting from the download numbers and CPMs that can be found in publicly available reports. (The Podtrac ranker, for all the caveats involved with its sample, is also very helpful in this regard.)

However, despite these private pushbacks, I haven’t encountered any podcast executive willing to provide a specific alternate estimate…until last Friday, of course, which saw Acast’s chief commercial officer Sarah van Mosel provided an estimated range of $80 to 200 million for 2015 during a presentation — a number she particularly draws from her previous work as WNYC’s vice president of sponsorships.

A glimpse at Future Panoply? Last Friday, the Graham Holdings-owned podcast company (and my former day job employer) announced its latest big-swing project: Revisionist History, a 10-part miniseries by author (and Charlie Kaufman-lookalike) Malcolm Gladwell. The company drew some notable writeups for the announcement, with Fast Company and CNN.com providing coverage on the teaser. Interestingly, the project is positioned as “the thing that Gladwell decided to make instead of a book this season,” which is a pretty solid pitch, I guess.

On stage at Hivio, Panoply chief creative officer Andy Bowers called the podcast a template for future projects. “A lot of podcasts we’ve done so far has followed a simpler, conversational format,” he said, noting that the company will likely be developing more projects with higher production values from here on out. This move makes sense, though I do wonder how this will affect existing Panoply shows, which typically result from partnerships with other publishers.

Revisionist History drops its first full episode on June 16.

Podquest playoffs. Last Thursday, Radiotopia released the list of 10 podcast pitches that have been accepted as semi-finalists into Podquest, its talent search program. From this group of 10, three finalists will be announced in July at the Podcast Movement conference in Chicago, where they will then be made to develop three pilot episodes over the course of four months. The winner, which will be invited into the Radiotopia network, will be announced in November at the Third Coast Festival.

You can find in-depth descriptions of all ten semifinalists on the Podquest site. And if you’re curious, you can find the stat-breakdown of Podquest applicants (1,537 entries! 53 countries! Wah!) on the PRX blog.

Congrats to the crews, and good luck! I’m rootin’ for ya.

Related: “The new audience is really where we are where we want to be — the diverse audience and the young audience, and the young people who haven’t been buying radios. How are they finding content and how do we get in front of them?” Still curious about what’s next for PRX? Check out this Fortune article featuring an interview with PRX’s newly minted CEO Kerri Hoffman by Lauren Schiller, which pairs well with my writeup from two weeks ago.

Towards more pods for kids. A couple of months ago, I wrote a few pieces exploring the relatively quiet genre of kids podcasting, and over the course of my research, I spoke to Lindsay Patterson, one of the creators of Tumble: A Science Podcast for Kids, who proved to be a very, very strong advocate of the space. Now, the Austin-based producer is taking her advocacy to the next level, collaborating with a number of other kid-focused podcast producers to form what they’re calling “a new grassroots organization of podcasters and advocates for high-quality audio content for children.”

“We want to increase visibility for the medium and enable the creation of more great audio shows for kids,” Patterson told me over email. “And since we exist in the children’s space, we think that standards and ethics should be a big part of the conversation.”

The organization will kick off its work with a public survey project that hopes to identify the makeup, behavior, and dynamics of the potential audiences for kids podcasts. “There’s no baseline data for how kids consume (or don’t consume) podcasts,” Patterson wrote. “Our June 2016 survey is a first step toward understanding how our audience values what we do.”

At this point in time, the podcasts participating in Kids Listen are: Tumble, Ear Snacks, Brains On!, Sparkle Stories, Book Club for Kids, StoryPirates, and Zooglobble. (These names!) Its digital presence consists of a Slack, a website, a hashtag (#kidslisten), and social media. “The beginnings of something great,” Patterson added.

The survey launches today. You can find the Kids Listen website here.

New podcast study from comScore. The report found that podcast advertisements were found to be the least intrusive compared to other kinds of digital advertising formats, according to Adweek. It should be noted that the survey study was commissioned by Wondery, a fairly new podcast network based in Los Angeles, suggesting increased efforts among podcast companies to raise the overall awareness of the space. To my eyes, the study itself isn’t as interesting as the fact that comScore produced it. There’s been an emerging argument among some circles that the big thing holding back more brand advertisers from jumping into the space is not necessarily the medium’s well-known measurements problem, but the absence of a reputable, legacy measurements company like comScore and Nielsen actively participating and vetting the space. This comScore study isn’t quite the active participation that will lead to a so-called legitimization the space is looking for, but I think it’s a good step.

Where to, newsmagazine? Add Steve Lickteig, former executive producer of All Things Considered and current executive producer of Slate podcasts, to the list of public radio emigres publishing essays on the future of audio. Lickteig wrote a Slate piece last Thursday arguing that voice-recognition technology — à la Amazon’s Alexa, Apple’s Siri, Microsoft’s Cortana, and Google’s…OK Google thing, which will soon be integrated into car dashboards en masse — will marginalize (or even kill) the straightforward broadcasts, a state of affairs that poses a significant threat to the newsmagazine format.

Central to Lickteig’s argument is the expectation that on-demand consumption behaviors will vastly supersede consumption behavior around linear formats. Here’s the key quote (heads up, the Keith Olbermann reference is related to the lede in Lickteig’s piece):

While listening to the radio remains easier than the alternative, it’s not very satisfying for the generation of people raised in an on-demand culture. People Keith Olbermann’s age (he’s 57) feel an obligation to consume news as it’s served. Tell a bunch of 19-year-olds that it should be up to the professionals to determine what news is most important, and they’ll laugh until their earbuds fall out.

There are a couple of really interesting elements in Lickteig’s argument here that you can spool out, including the notion that us ~millennials~ and post-millennials (whatever you call those people) have in large swathes no love for editorial judgment. But I think the most interesting and pressing element here is the glimpse Lickteig provides at an underlying process that sees the further atomization of audio content and information into discrete units that users can customize, shift, and reorient…not unlike the way we exist as digital consumers of music now. (If I branded myself as some sort of thought leader, this would be the point where I’d regretfully coin the phrase the Spotification of News.)

Here’s my counterpoint to Lickteig’s bullish argument: As a voracious consumer of many, many different types of media, I’d argue that the tyranny of choice and control is totally real. And it’s absolutely crippling. (Consider two things: the gaping abyss that stares back at you from the Netflix menu, and the relief embedded in celebrations of Spotify’s Discover Weekly feature.)

Which isn’t to say, of course, that I disagree with the broad strokes of Lickteig’s forecasts: Indeed, the broadcast newsmagazine format as we know it today will likely become ineffectual, as will all other creations of linearity, like the nightly news, SportsCenter, and the front page. But I’d argue that this isn’t a consequence of the decline of broadcast; rather, it’s a consequence of the relegation of broadcast from being the primary information channel to being one-of-many in a much larger arsenal of information presentation. And yeah, sure, a story of decline always sucks, but there’s that thing about lemonade: When you’re no longer expected to be dominant, you’re liberated from the pressure — and design limitations — of dominance.

That’s no small consolation. In my mind, at least.

Bites:

  • DGital Media announced “league direct partnership” with the UFC to produce a show covering the mixed martial arts league. This will prove to be an interesting addition to the company’s portfolio of partnerships, which includes Recode and Yahoo’s The Vertical. (UFC)
  • Bloomberg News launched the latest in its steadily growing stable of podcast, Material World, a show that will deliver stories on the consumer goods world. I’ll more about Bloomberg podcasts at some point — they’ve got a unique structure going on over there — but for now, keep your eyes on Bloomberg News HQ. (iTunes)
  • Radio Diaries published quite a remarkable episode recently, featuring a young woman in Saudi Arabia, Majd, documenting her life over two years. It aired as a 22-minute segment on All Things Considered, with which the podcast has a partnership, last Tuesday. I listened to it over the weekend, and my goodness, it’s quite lovely. (Radio Diaries)
  • NPR launched Code Switch, its newest podcast, last week. The show will explore issues at the intersection of race and culture, and from the sound of its first episode, it appears to draw heavy influence from the specificity and presentational looseness of the NPR Politics podcast. Nieman Lab has a great interview with principals Shereen Marisol Meraji and Gene Demby, which you should totally check out. (Nieman Lab)
  • Speaking of public radio launches, WNYC rolled out More Perfect, the Radiolab spinoff focusing on the Supreme Court, last week. The podcast is being billed as a mini-series. (Radiolab)
  • Audioboom signs the popular Undisclosed podcast to an “exclusive ad sales deal.” (RAIN News)

This version of Hot Pod has been adapted for Nieman Lab, where it appears each Tuesday. You can subscribe to the full newsletter here. You can also support Hot Pod by becoming a member, which gets you more news, deeper analysis, and exclusive interviews; more information on the website.

POSTED     June 7, 2016, 10:25 a.m.
SEE MORE ON Mobile & Apps
SHARE THIS STORY
   
Show comments  
Show tags
 
Join the 35,000 who get the freshest future-of-journalism news in our daily email.
Vox’s video about Chechen leader accused of torturing gay people is being spammed with dislikes
As of noon on Friday, the video had 8,453 likes and 4,703 dislikes. The typical ratio of likes to dislikes on a Vox video is 10:1.
You can now get a few additional features on Nuzzel for $100 a year
The news aggregator this week launched Nuzzel Pro, which is ad-free, lets users filter stories, and use a dark mode.
Want to stop a spreading fake news story? Choose one of these four points of attack to fight back
Plus: The faces of a Russian botnet, an alt-right newsletter to subscribe to, and “falsehoods in a forest of facts.”