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Spotify renewedits contract bridge with podcaster Joe Roganthis weekend , but with a twist . After almost four years , “ The Joe Rogan Experience ” is no longer a Spotify - undivided podcast .
This might seem like a concession on Spotify ’s part , as single deal have long been a part of the troupe ’s strategy . ahead of time on in Spotify ’s quest to own podcasting , it evolve democratic studios likeGimletandParcast . Over sentence , Spotify turned these studios ’ shows into exclusives , so they were no longer available on any other app — but about four year later , that secret plan programme is dislodge . Now , Spotify may benefit more from sell advert on these show than it would from corner hearer into download Spotify .
According to astatementfrom the Gimlet and Parcast workers ’ trades union , this scheme to convert attender from other podcast platform never worked that well . Some shows suffer more than three - quarters of their audiences after being converted to Spotify exclusive .
It makes good sense that Spotify ’s podcast strategy is changing , because it was n’t working . The platform made several podcasting startup accomplishment worth C of millions of dollars each , then invested in high - cost quite a little with crowing name Barack and Michelle Obama , and Meghan Markle and Prince Harry . The royal couple only made 12 episode of one podcast , but they are rumor to have been paid over$20 million . These speculative business decisions have frustrated podcasters , who take in as the company that was suppose to revolutionize podcastingleverages three rounds of layoffsin a class .
“ The Joe Rogan Experience ” is a unequaled part of Spotify ’s portfolio , though ( and that ’s without even getting begin on host’srepeatedendorsementofharmfulmisinformation ) . In 2022 , the show had around11 million attender per installment . Since number to Spotify in 2020 , Joe Rogan ’s show has been the most - listened - to podcast on the platform every twelvemonth . If exclusivity is n’t return the returns Spotify skip , then it gain sentience to try a unlike approaching .
“ The substantial value of Spotify ’s relationship with Joe Rogan is being his undivided ad marketer , ” saidMultitude ProductionsCEO Amanda McLoughlin , who manages advertizement sale for more than 25 podcasts . “ Forcing companies that want to buy ads on the Joe Rogan show to do so through Spotify must be more profitable than forcing his listeners to use their app . I intend they discovered that over the first deal term , and were willing to let platform exclusivity go so as to keep back ad sales exclusivity , ” she told TechCrunch .
Over the last five year , Spotify has made itself a one - stop shop class for podcast product through acquisition worth over $ 1 billion combined . Spotify have the yield process of making a podcast from offset to finish — you may record , edit , distribute and monetise your podcast all through the technology that Spotify bought fromAnchor , Megaphoneand other companies . In the shell of these blockbuster shows , Spotify ’s invite - only automate ads computer programme is particularly relevant , because it allows Spotify to take a huge excision of ad revenue .
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In the automated ads program , ad revenue is split 50 - 50 between Spotify and the podcaster . On a show like Joe Rogan ’s , that ’s a huge amount of money . Within the podcast industry , these flock can sometimes be structure as giving the talent an advance on advert sale . So , it ’s possible that Spotify is paying Joe Rogan a quite a little of money in the short term in Bob Hope that the company will make even more money with its cut of advertizing sale in the longsighted term . Spotify decline to remark on the nature of the deal .
The same logic could play along for other top podcasts that are breaking gratis from Spotify exclusivity , like “ Call Her Daddy . ” As host Alex Cooper go up the end of her three - year , $ 60 million deal with Spotify , she , too , ink a Modern agreement that allows her to publish her show on other platforms . However , Spotify retain the single right to the video rendering of the podcast . Like “ The Joe Rogan Experience , ” Spotify might make more money by selling ads on “ Call Her dada ” than by retain single publication rights .
Cutting the exclusivity from its contract bridge with Rogan could also aid Spotify ’s repute , in a unknown side - effect . Spotify still must contend with the morals of underwriting a podcaster who rattles off conspiracy and harms its relationship with artist likeJoni MitchellandNeil Young , who removed their music from Spotify in objection ( surprisingly , Rogan ’s spread of coronavirus - interrelate misinformation did n’t have anytangible impacton Spotify ’s business ) .
Spotify declined to share concrete details about its young deal with Rogan . But a Spotify representative told TechCrunch that it will “ handle distribution and advert sales that will optimise for future ontogeny . ”
Since the podcast has been on Spotify , overall podcast hearing has increased by 232 % , but this saltation could also contemplate Spotify ’s other extensive investment funds in the space .
“ As a result of this exponential ontogenesis we ’ve seen , this has pull in a wide array of advertiser that has fueled the 80 % increase in revenue in 2023 since 2021 including a 45 % growth in revenue in 2023 for the show , ” the ship’s company wrote in an e-mail to TechCrunch .
Joe Rogan ’s break from exclusivity maynot be a good thingfor society … but it ’s believably unspoiled for Spotify ’s bottom line .
Everything you know about the podcast industry is a lie
Spotify backlash over Joe Rogan did short to supercharge its stream rivals
