Spotify’s deal for Joe Rogan was priced at over $200 million – NYT (NYSE:SPOT)
How much did Spotify pay (NYSE: SPOT) shell out for podcast star Joe Rogan? Reports first suggested the deal was valued at $100 million, but it now seems to be worth at least double that. According to New York Timesthe contract over $200 million at the streaming giant covered three and a half years of exclusivity, and despite recent backlash against misinformation about vaccines, racism and other problematic themes, The Joe Rogan Experience still remains Spotify’s biggest podcast in over 90 countries.
Thought : Already a music streaming juggernaut, Spotify was looking for a catalyst to take its platform to the next level. Seeking to “further challenge Apple and Google, he wanted a superstar podcaster, much like Howard Stern helped put satellite radio on the map in 2006,” according to the NYT report. Spotify executives came to regard Joe Rogan as this transformative personality, and after intense courtship, Spotify announced a licensing deal to exclusively host the JRE in May 2020 (its stock increased by 17% the week the deal was announced).
Aiming to find a more profitable business than music hosting (it pays two-thirds of every dollar to rightsholders), Spotify also tested video in 2015, but nothing came of it. His strategy ultimately centered on becoming the biggest player in podcasting, such as creating new trending programs on Spotify Originals. It also bought entire content companies, Gimlet Media in 2019 and The Ringer in 2020, for just under $200 million, according to company filings.
Quote: “All music streaming services offer the same regular vanilla ice cream for the same price,” said Will Page, former chief economist at Spotify. “The overarching question is how to make your client proposition stand out.”