BlogTalkRadio: For Business

The two-year-old Internet radio site aims to profit by offering a service for companies to broadcast to employees and the world

by Jennifer L. Schenker

In the past two years, BlogTalkRadio has become one of those curious Internet sensations—millions rave about it, but few understand how it'll make enough money to survive. The company offers a free, eponymous service that lets anyone with a telephone and a computer host a live radio talk show that's broadcast over the Internet—no downloads or special equipment necessary. Some 3.2 million people listen in each month to amateur broadcasters and guests, who have included movie star Brad Pitt, author Salman Rushdie, and U.S. Presidential hopefuls Barack Obama and John McCain.

What's less well-known is that BlogTalkRadio is working increasingly with businesses, an effort that may be the key to its financial future. Companies are licensing BlogTalkRadio's technology to broadcast to employees and the outside world. Among the first to sign up: Intel (INTC), Sun Microsystems (JAVA), HarperCollins Publishers, Hachette Book Group USA, and Golf Magazine. BlogTalkRadio co-founder Alan Levy, a 49-year-old telecommunications entrepreneur, says the service is like an audio form of blogging and "every company is looking to be a part of the conversation."

Helping Companies Connect

It works like this: BlogTalkRadio sets up branded Internet radio stations for companies for a fee of $7,500 a month and takes care of the technology side of things. The companies create and run their own shows, which are streamed live on their Web sites and on BlogTalkRadio's Web site at the same time. Once a show is over, it's automatically recorded as a podcast so people can listen later on a computer or iPod.

Companies are just now sorting through the different ways they can use the service. Time Warner's (TWX) Golf Magazine uses it to connect with readers who call in for discussions of recent tournaments or podcasts of past shows. Chipmaker Intel sees it as a tool for developers to communicate as a group, even when they're scattered around the globe. Sun Microsystems has one BlogTalkRadio show on emerging technologies, so employees can hear experts discuss topics such as the future of digital archiving and the Java programming language. It has another show in which its Chief Gaming Officer Chris Melissinos talks about developments in that space with a general audience.

Even the Defense Dept. has tried BlogTalkRadio. Its shows cover everything from veterans' health issues to current military operations in Iraq and Afghanistan. During an Aug. 6 broadcast, Colonel John Cuddy discussed how his staff is mentoring police in Kandahar and gave updates on the progress of the Afghan National Police. Roxie Merritt, the Defense Dept.'s director of new media, calls BlogTalkRadio a "great tool." She says it's particularly useful for engaging young people who may not read newspapers or magazines. "We want to have two-way dialogue," she says.

A "Really Big" Idea

Levy took a circuitous route to becoming an Internet radio entrepreneur. He started his career as an accountant and ended up working for a number of telecom startups, including Viatel and Destia. After the dot-com crash, Levy began buying up telecom assets on the cheap with the proceeds from one of his companies that had been acquired. He started blogging after his father fell ill with cancer to keep his friends up-to-date, and was surprised by the size of the blogging community. He thought if people could use their phones to talk on the Internet, it could open up the discussion to a wider community. So using some of his existing telecom assets and technical staff, he set out to create the service.