While podcasting was originally embraced by radio as simply a convenience to listeners, the medium is proving to be an incremental-revenue stream, MediaWeek writes (via MediaBuyerPlanner). For example, Premiere Radio Networks, which offers subscription podcasts of high-profile radio personalities such as Jim Rome and Rush Limbaugh at $60-$70 a year, has landed an advertising deal with Starburst. Starburst will pay six figures to sponsor a three-minute, customized podcast based on the Ryan Seacrest American Top 40 show.

Premiere is also the first major radio broadcaster to embrace direct delivery of video to the new iPods, offering one-minute video segments of the Rush Limbaugh Show to subscribers.

Clear Channel is seeing local radio podcasts catch on with advertisers, with companies like Virgin Mobile in New York, the Apple Store in Dayton and a Mercedes-Benz dealer in Phoenix purchasing 15-second spots before the airing of content.