Joe Rogan helped cement Spotify’s place of dominance on this planet of podcasting. Will the audio large drop one other $200 million to maintain him unique? The panorama is vastly totally different three years later.
The deal Spotify struck with Joe Rogan for podcast exclusivity is estimated to be value $200 million, greater than the preliminary worth reported ($100M). That deal covers 3.5 years, which is coming due within the subsequent six months or so. ‘The Joe Rogan Expertise’ is the most important podcast on Spotify’s Wrapped 2022, adopted by Alex Cooper’s Name Her Daddy. Rogan is estimated to rake in round 11 million listeners per episode, with the most important weekly viewers for a podcast in america, in keeping with Edison Analysis.
However the Joe Rogan podcasting deal was struck at a time when Spotify had cash to burn in its pockets in its quest for podcast dominance. It has toppled Apple because the ‘King of Podcasts’ within the public eye (although we don’t name them spotcasts, can we?), which implies the technique has shifted. Not in search of to ascertain itself within the area of interest, Spotify CEO Daniel Ek advised traders that it will not “overpay or over-invest” in its future podcast offers.
Ek restructured Spotify’s podcast strategy earlier this 12 months, parting methods with Spotify’s Chief Content material Officer Daybreak Ostroff, the architect of Spotify’s podcast strategy. Ostroff was let go from the corporate as a part of the primary main spherical of layoffs to hit Spotify. Ek advised traders that Spotify had no information when it initially struck these offers, however now the corporate has a mountain of information to again up its selections.
“Now now we have much more information and never surprisingly, what we’re discovering is that a few of these reveals work rather well and a few don’t work nicely,” he advised traders throughout his Q2 monetary name. “We’re retaining some offers, doubling down on others, and stepping out of different relationships that didn’t work.” So will Joe Rogan be retained, double downed, or reduce unfastened?
Spotify not too long ago struck a high-profile take care of Trevor Noah that didn’t embody an exclusivity clause—which dropped the worth for Spotify. Will they pursue the identical path with Joe Rogan as soon as his contract is up?