This is one of the strategies Spotify has chosen to invest in podcasts to provide access to exclusive content to retain its subscribers. If it all works out, the Swedish streaming service has sometimes spent astronomical sums of money just to get the exclusivity of a single podcast!
Joe Rogan Experience negotiated at $200 million? You’ve probably heard of the “Joe Rogan Experience” in the case between artist Neil Young and the number 1 streaming service in the world. Indeed, Young had issued an ultimatum to Spotify: its music catalog or the immediate withdrawal of the Joe Rogan Experience podcast for the reason of misinformation on the vaccines against Covid-19. Wishing to protect freedom of expression and not give in to blackmail from an artist, Spotify preferred to keep the Joe Rogan Experience. However, are these really the two reasons that prompted the streaming giant to continue its collaboration with the famous American animator and comedian? Maybe not.
According to a recent New York Times article, Spotify has been pushed to the wall in case the service can’t back down after the incredible investment it made to get world exclusivity of podcasts.
Indeed, as suggested by some indiscretions during the exclusivity announcement, Spotify may have invested not the $100 million amount… but $200 million! This amount, which can be compared to the acquisition of a movie or series for a streaming service like Netflix, seems clearly disproportionate for a podcast, but Spotify was willing to do anything for the Rogan experience.
According to two unnamed sources and very close to the exchanges between the Swedish firm and Joe Rogan, the $200 million this amount is not accurate, the agreement could have been signed at a slightly higher price. How to explain such investment? If Spotify decides to get a $200 million exclusive podcast, it’s because the Joe Rogan Experience manages to attract an unprecedented number of listeners.
For the most popular episodes, the podcast registers millions of listeners. This success is mainly present in the United States, but also in 92 countries around the world. Joe Rogan also has a huge influence on social networks, with 8.3 million followers on Twitter and 14.6 million on Instagram.
Suffice to say that with this podcast, Spotify has attracted a ton of new paying users, moreover the company does not hide it in its financial reports, it cites Joe Rogan’s podcast as a ” growth accelerator “. Finally we understand better why Spotify did not seek to retain Neil Young …