BlogTalkRadio: For Business

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BlogTalkRadio isn't profitable yet, but it's making progress. In June, the Lakewood (N.J.) company raised $4.6 million in a round of financing led by the Kraft Group, the owners of the New England Patriots. The company plans to use the money to expand its operations, adding video capabilities and offering service internationally.

The consumer side of the business brings in revenues too, though it's through advertising instead of the fees that corporations pay. Individual broadcasters can sign up for BlogTalkRadio's advertising program, which gives the company the right to insert commercials into radio shows. Hosts get a cut of the revenues—35% if BlogTalkRadio finds the sponsor and 50% if the host does. Though Levy has signed up such advertisers as Deutsche Telekom's (DT) T-Mobile and LifeLock, he concedes no consumer is making decent money at this point. Still, he's optimistic about the future. "If we have 1,000 shows about parenting, we are able to pitch this to a company like Procter & Gamble (PG)," he says

Internet radio remains small potatoes compared with traditional and satellite radio. Still, Mark Mulligan, a new media analyst at consultant JupiterResearch, expects steady growth, in part because the medium allows flexibility and capability beyond those of existing offerings. The key question for BlogTalkRadio may be whether businesses decide its technology offers a valuable service or interesting novelty. Levy, for one, is convinced of the potential. "We are helping businesses of all sizes do a better job reaching their audience," he says. "I am convinced this is going to be really big."

Schenker is a BusinessWeek correspondent in Paris.