Craig Hewitt, founder of podcast hosting platform Castos, describes acquiring an existing WordPress plugin as Castos's primary user acquisition channel.
Insight
Hewitt: A $20M exit provides life freedom that $500k cash flow cannot
“I think that, you know, if you look at really kind of changing your life and putting you on a different trajectory, you know, selling a business for twenty million and taking home, you know, whatever, 10 changes your life versus a business that, that cash flow…”
Insight
Podcast Hosting Storage-Based Pricing Is Broken
“And for us, you know, it's kind of a funny business because the storage, you know, doesn't really cost anything. It's the bandwidth for us to send files out. So I think the pricing just in the industry is broken or a little funny.”
Disclosure
Hewitt: Most Castos users stay on $19 plan because podcasts rarely monetize
“Most, most folks are on the beginner plan because a lot of folks, you know, podcast is for a lot of people is not a revenue generating thing. So they have a hard time paying too much for it.”
Prediction Not checkable as stated
Hewitt: Castos expects an exit or transaction within five years
“You know, there's just a ton of kind of velocity in the podcasting space these days, and so we expect something to happen with our business in the next Five years, say.”
Prediction Partly held up
Google Will Soon Index Audio, Massively Boosting Podcast SEO
“No, but I think if you're a betting man, betting person, you would say Google will start indexing audio very soon, and that's what we think. So the SEO impact of podcasting will get massive, you know, for folks that have hundreds of shows.”
Disclosure
Hewitt: Castos generates 70% of revenue from SaaS and 30% from services
“Like 70, 30... 70 SAS.”