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Audible CEO Donald Katz outlined the expansion initiatives that will reduce Audible's earnings and cash flow in 2005 and which consequently crushed his stock this evening in late trading. Geographical expansion will startwith the U.K. and sector expansion with the education market. But his most interesting remarks were about distributing Audible content wirelessly (cell phones and car audio), and becoming a distribution channel for bloggers and Podcasters.

He might not have judged the stock impact correctly, but he certainly gets The Long Tail:

We plan to increase our marketing partnerships at retail with catalogers and with online distribution endpoints…

…we plan to significantly step up our focus on wireless distribution and enabling support in future automotive telematic systems. By the middle of 2005, we plan to allow our customers to receive over-the-air delivery of the Audible service...

…we will shortly publish powerful tools and support services to aid the growing community of talented self-publishers, bloggers, and Podcasters. We will move to combine some of the singular advantages of the Audible listening experience, our broadly adopted platform for Internet-based audio distribution and powerful new RSS enclosure-based distribution technologies, both as additive services for our current content partners and as new tools for the growing self publishing community.

Many of our listeners and partners are among the thought leaders in the blogging and Pod casting communities, and we plan to keep up with members of this community as we move forward. This is particularly heartening for me as engaging the vast pool of undiscovered creative capacity and allowing these voices to be heard and even to be compensated as professionals is an element of the business plan I wrote back in 1994...

(Quotes from the CCBN StreetEvents transcript.)

Source: Audible (ADBL) on Bloggers, Podcasting, The Long Tail and Wireless (quotes from the conf call)