When Spotify signed a licensing deal with Joe Rogan in mid-2020 to bring his popular podcasts to the streaming service, rumors at the time suggested the deal was valued at more than $100 million. Apparently it was north of that number.
The New York Times now claims that the actual value of the three-and-a-half-year deal was at least $200 million, with the potential for more (possibly based on meeting performance targets).
As expected, the integration of The Joe Rogan Experience has helped establish Spotify as one of the biggest players in the podcasting world. The deal also came with some risk, as Rogan is seen by some as a controversial figure.
Last month, musician Neil Young asked Spotify to remove his music over comments made on Rogan’s podcast about vaccine information.
The streaming giant obliged, and in the weeks that followed, more and more musicians left the service. Spotify added content notice notifications to select episodes of Rogan’s podcast, and CEO Daniel Ek said the company would invest $100 million in the “licensing, development and marketing” of the podcast. audio and music “from historically marginalized groups”.
Spotify sought to diversify its offerings with the introduction of video to its platform years ago, but the effort largely failed and failed to generate the additional revenue stream Spotify was looking for to supplement its business. musical. The company didn’t want to walk away with podcasting, so they went to fences with Rogan and offered him a massive amount of money to sign on the dotted line.