“We want to become the Netflix of podcasting,”: Grant Blackley on turning podcasts into a profit driver
Southern Cross Austereo has big plans for growing its original podcasting with a view to becoming a leader in the audio and entertainment marketplace.
Speaking with The Australian, SCA CEO Grant Blackley said he wanted to turn original podcasting into SCA’s biggest profit growth driver.
“We want to become the Fox Sports or Netflix of podcasting,” he said. “The key is original content.
“Fox Sports creates original content in cricket, football and other sports. And what we go to Netflix most of all now is for original series. So what we are establishing is a premium, original-first model for podcasting.”
Speaking with Radio Today earlier this year, Blackley said that the path to monetizing SCA’s podcasting platform PodcastOne was becoming “much clearer,” but would not put a timeframe on the process.
Now, he’s told The Australian that he anticipates that by 2021, original podcasting will be making significant profits for SCA.
Blackley estimates that original podcasts currently creates $5 million in gross revenue nationally, a figure that according to PwC will grow by tenfold over the next four years to $50 million.
That revenue will still need to be split among many players.
Comparably, the Sydney radio revenue market alone is worth over $250 million and is split between just three players.
“Media buyers should start paying attention,” insists Blackley. “There is an education process underway.
“The advertiser has been saying, ‘My world is busy with radio, TV, print and out-of-home advertising, and until podcasting gets to critical size, we’re not paying attention.’ But I think we’ve hit a critical scale that is making it investible media.
“This is permanent. We will hit 100 million downloads a year by about Easter. The sheer scale of the listenership often surprises people.”