Despite facing controversies and criticism, Spotify has renewed its partnership with podcaster Joe Rogan with a new multi-year agreement. The deal, reportedly valued at $250 million, will no longer keep Rogan’s show exclusive to Spotify, marking a departure from the company’s previous strategy to build its podcast business around exclusive content.
The agreement with Rogan initially aimed to bolster Spotify’s position in the podcast market, where it had made significant investments in exclusive content and technology. However, Spotify’s recent shift in direction includes the move to make Rogan’s show available on other platforms, as well as allowing other previously exclusive shows to expand their reach beyond Spotify.
Spotify’s change in approach is taking place amidst its ongoing financial challenges, despite the growth in podcast consumption and ad revenue since the company’s initial acquisition of exclusive content. This shift also aims to relieve pressure on Spotify when controversial topics arise, as seen in the past when Rogan’s content sparked backlash and led to Spotify adjusting its content policies.
In addition to the changes in strategy, Spotify’s announcement highlights the continued popularity of Rogan’s show, with impressive listener numbers and ad revenue growth since joining the platform. The move also reflects Spotify’s efforts to prioritize ad revenue growth over keeping content exclusive in hopes of attracting new subscribers.
The latest developments in Spotify’s podcast strategy indicate a significant shift in its approach to content exclusivity, signaling a new direction for the company’s future podcast initiatives. Rogan’s move to new platforms marks the end of Spotify’s exclusive podcast era, bringing more opportunities for growth and reach for both the platform and its creators.
Updated, 2/2/24, 2:10 PM ET Updated to note that Spotify disputes the figure being shared by the Journal. However, it declined to comment on deal terms.
