Originally Posted by DonkeyKongSr
You must have missed it, be he contractually cannot make any cash off the podcasts in 2009 or he stops receiving checks from CBS (they are paying out his contract even though they didn't legally have to AFAIK). So, he's footing the $5K/month bill right now to keep an audience around for when CBS stops paying him and he can start cashing in on podcasts.
Originally Posted by Mark1010
I listen to this on a daily basis. I know nothing about producing a podcast but I wonder if it really costs 5k a month to make this show...
If you think about it, $5k/month is actually pretty cheap. He's doing 5 shows a week which is 20 a month. So that's only $250 per show.
I dunno if he's paying his producer, or if he has any other technicians working for him or if they're accounting for equipment costs but that seems really reasonable.
I don't know the details of his CBS contract, but if most of their costs are in bandwith he should be able to get a sponsor to just take over the bandwith payments (ie; never pay Corolla anything, just pay the web hosting company directly). Except that charging an advertiser $100-$200 an episode would be way underselling the show. And given that it's under the umbrella of his production company he probably doesn't care about investing ~$50K over the rest of the year into the show. That's peanuts compared to startup production costs for anything else (ie; television) and it's a write-off anyway, Jerry.
Once he's able to monetize the show properly, he'll make that $50K back in no time. What's more, if he is
the "Jackie Robinson of podcasts" that's huge for his production company - How many other
podcasts could he be producing? Yeah, the whole point of podcasting is that anyone can do it, but once he's built a market for himself and established himself as the expert a bunch of real celebrities are going to be willing to let him dip his beak in their show.