Rice Podcast Gets Used

Progress or Payola?

The bold move by Warner Brothers opens up new opportunities for podcasters interested in generating revenue. Podcasts with substantial audiences could offer an attractive channel for record labels wanting to create a buzz around new bands.

The deal was brokered by Bill Flitter of Pheedo, an RSS marketing firm. Flitter describes the sponsorship as "paid placement." The sponsorship raises the possibility that podcasters may soon have a strong financial incentive to air similar commercial content.

Rice plans to disclose ths show's financial relationship when he plays the paid content, but there's no rule that says that he or other podcasters have to do so. Free of FCC rules, podcasting offers labels an opportunity to use "grassroots" media in ways that would not be allowed in the broadcast world.