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A podcast is a media file that is distributed by subscription (paid or unpaid) over the Internet using syndication feeds, for playback on mobile devices and personal computers.
Like ‘radio’, it can mean both the content and the method of syndication. The latter may also be termed podcasting. The host or author of a podcast is often called a podcaster.
Though podcasters’ web sites may also offer direct download or streaming of their content, a podcast is distinguished from other digital audio formats by its ability to be downloaded automatically, using software capable of reading feed formats such as RSS or Atom.
Podcasting, created by former MTV VJ Adam Curry, is a term that was devised as a crisp way to describe the technology used to push audio content from websites down to consumers of that content, who typically listen to it on their iPod (hence the “pod”) or other audio player that supports mp3 at their convenience. The term podcasting is meant to rhyme with broadcasting and is a derivative of the iPod platform.
What makes podcasting special is that it allows individuals to publish (podcast) radioshows, that interested listeners can subscribe to.
Basically, a Podcast is a (in this case) free MP3 based Radio type show.