USA Today: A podcast is a digital recording of a radio-style audio program that can be downloaded from the Internet and played on a digital music player. Many podcasters think the technology could revolutionize radio as TiVo did television.
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Record labels worry that listeners will pirate the songs contained in the downloaded radio shows. The result: yet another Napster-like standoff over piracy and music rights.
Streaming media is different from podcasting because it’s not a recording, which makes it harder to pirate. A stream is essentially a broadcast that travels over the Internet instead of the airwaves.
Record and radio companies have struck a blanket licensing agreement for streaming based on traditional radio licenses. No such agreement exists for podcasting, which is why most podcasts are currently “talk radio” or feature bands on indie labels that want all the exposure they can get.