Any new subscriber Rogan - or Michelle Obama, who announced her first Spotify podcast on Thursday, (July 16) - attracts will result in incremental royalties for music rights holders. The Rogan deal represents a non-threatening power shift for music companies. Spotify need not change its primary goals of getting more subscribers and reducing churn. (Of course, Spotify must accurately isolate Rogan’s effect on its already-strong growth.) This isn’t a move to generate more advertising (see below) this is - or should be - an effort to gain loyal customers. Joe Rogan Inks Exclusive Multiyear Podcast Deal With Spotifyīy Billboard’s rough estimate, the Rogan deal pays off if he - and he alone - attracts 1.2 million to 1.7 million subscribers with a low churn rate, high ARPU (average revenue per user) and average gross margin. But $100 million isn’t obscene for a fast-growing company that had about $7.4 billion of revenue last year and expects between $8.4 billion and $8.8 billion this year. But Spotify can use its global presence to help Rogan gain international fans.Īt first blush, nine figures seems like a ridiculous sum for a single podcast without ownership. Los Angeles-based Rogan already has an audience outside of the U.S. Record labels and music publishers benefit when podcasts help attract and retain subscribers.ģ. Spotify’s licensing deal with the Joe Rogan Experience podcast for a reported $100 million can pay for itself by attracting fewer than 2 million subscribers.Ģ.
1 on Stitcher’s list of top podcasts.) The streaming giant paid handsomely, a reported $100 million for a multi-year licensing agreement for a global exclusive.ġ. 2 on Chartable’s list of Apple podcasts in the U.S.
Obviously, Spotify wants JRE, launched in December 2009, because it’s one of - if not the - most popular podcasts in the U.S. In the last month, iHeartRadio, through a deal with WarnerMedia, and SiriusXM, through its acquisition of podcast app Stitcher, have attempted to keep pace with the leader of the pack, Spotify.Īmidst a flurry of dealmaking for original content was Spotify’s exclusive deal with Joe Rogan’s widely popular podcast, The Joe Rogan Experience. Podcasting has become an arms race as major streaming and broadcast companies acquire companies and launch partnerships with celebrities for original programming.
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