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Why It’s Beneficial for Spotify that Joe Rogan’s Podcast is No Longer Exclusive

Remon R.
Last updated: 2024/02/08 at 11:02 PM
Remon R.
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Actually, It’s Good For Spotify That Joe Rogan’s Podcast Is
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Spotify recently extended its contract with podcaster Joe Rogan, but with a twist. After nearly four years, “The Joe Rogan Experience” is no longer an exclusive podcast on Spotify.

This change may appear to be a shift in Spotify’s strategy, as exclusive deals have been a significant part of the company’s approach. Early on, Spotify acquired popular studios like Gimlet and Parcast to make their shows exclusive to Spotify. However, the company’s focus seems to have shifted to selling ads on these shows instead of locking them into exclusivity.

According to a statement from the Gimlet and Parcast workers’ unions, converting listeners from other podcast platforms to Spotify did not work well, with some shows losing a significant portion of their audiences after becoming Spotify exclusives.

It is evident that Spotify’s podcast strategy needed to change, especially after making costly acquisitions and investing in high-profile deals with celebrities like Barack and Michelle Obama, Meghan Markle, and Prince Harry. These decisions have led to frustration among podcasters as Spotify underwent three rounds of layoffs in a year.

Despite these challenges, “The Joe Rogan Experience” stands out in Spotify’s portfolio, with around 11 million listeners per episode in 2022. Since joining Spotify in 2020, Joe Rogan’s show has consistently been the platform’s most-listened-to podcast. If exclusivity is not yielding the expected returns, it makes sense for Spotify to explore a different approach.

Amanda McLoughlin, CEO of Multitude Productions, believes that the real value of Spotify’s relationship with Joe Rogan lies in being his exclusive ad seller. She suggests that selling ads on the Joe Rogan show through Spotify may be more profitable than enforcing platform exclusivity.

Over the past five years, Spotify has positioned itself as a comprehensive podcast production platform through acquisitions worth over $1 billion. With the automated ads program, Spotify can take a large cut of ad revenue, potentially resulting in substantial earnings from shows like Joe Rogan’s.

While Spotify declined to comment on the specifics of the new deal with Rogan, it is clear that the decision to remove exclusivity could benefit Spotify’s bottom line. Additionally, other top podcasts, such as “Call Her Daddy,” are also breaking free from Spotify’s exclusivity in pursuit of potentially more lucrative ad sales opportunities.

By relinquishing exclusivity with Rogan, Spotify may also improve its reputation, which has been strained by controversies surrounding the podcast host’s remarks. Despite this, Spotify has seen significant growth in overall podcast listening, attracting a wide array of advertisers and boosting its revenue.

Joe Rogan’s departure from exclusivity may not be favorable for society, but it appears to be beneficial for Spotify’s financial performance.

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TAGGED: exclusive, Good, Joe, longer, podcast, Rogans, Spotify

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Remon R. February 8, 2024 February 8, 2024
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