I believe he's developing a small piece of software that'll be installed on your PC.  The mediafly software will then update your ipod or mobile device with all the latest and greatest podcasts based upon what you're interested in.  The community will then vote on what they like or don't like and the podcasts will earn some sort of rating.  I don't listen to podcasts, but I guess the kids love 'em.  My 20 year old sister said they're all the rage at school. 

 

I believe ad revenue is a large part of his plan.  Where those ads are going to be inserted I haven't a clue.  He might also collect money from providers looking to have their content on his "network" or charge subs a monthly fee to access premium content.