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Joe Rogan has secured a brand new multiyear cope with streaming big Spotify. The brand new settlement would permit the favored “The Joe Rogan Expertise” podcast to be distributed throughout varied platforms together with YouTube, Amazon, and Apple. This a change from the earlier deal’s phrases, which made the present unique to the music streaming service.
“Spotify will work intently with Joe and his crew to proceed to maximise the viewers of the present throughout platforms,” the corporate mentioned in a ready assertion.
Spotify declined to supply Quartz with the specifics relating to the deal, nevertheless, the Wall Road Journal reported that it could possibly be price as a lot as $250 million. The deal’s construction contains an upfront minimal assure and an settlement to separate advert gross sales income between Rogan and Spotify.
Rogan’s earlier cope with Spotify tied his cost to viewers targets, in response to the Journal. His payout for that deal is estimated to lead to between $180 million and $220 million by the top of 2024.
What this implies for Spotify’s podcasting technique
This information comes as Spotify has appeared to shift its technique round podcasting with a stronger deal with advert income.
General podcast consumption on the platform has elevated by 232% since Rogan’s podcast turned unique on Spotify, the corporate mentioned, with the additional advantage of attracting extra advertisers to the platform. Income for Rogan’s pod has elevated 45% in 2023 since 2021.
In its most up-to-date quarterly earnings report, Spotify reported that advert gross sales accounted for about 13% of its whole income within the three months ending Sept. 30, 2023. Advert-supported income elevated 16% year-over-year to 447 million euros ($482 million) in that very same interval from 385 million euros ($415 million) the yr prior.
The streaming platform is estimated to have invested about $1 billion in podcasts. In 2019, it acquired podcast studio Gimlet Media for about $230 million. A yr later, it took over Invoice Simmons’s sports activities media community for $200 million.
The corporate additionally signed high-profile offers with the Barack and Michelle Obama for $25 million and former UK royals Prince Harry and Meghan Markle for $20 million. Each {couples} have each since parted with Spotify.
In December, the corporate canceled two critically acclaimed podcasts: Jonathan Goldstein’s “Heavyweight” and the Pulitzer prize-winning “Stolen” by journalist Connie Walker. That very same month, Spotify laid off 17% of its workforce or about 1,500 jobs. This adopted earlier cuts to the corporate’s podcast division in June when it laid off about 200 workers.
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