Spotify Secures Multi-Year Deal with Joe Rogan to Boost Advertising Revenue

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Spotify Technology SA (SPOT.N) announced a new multi-year deal with comedian and podcaster Joe Rogan on Friday, aiming to leverage the immense popularity of “The Joe Rogan Experience” podcast to drive advertising revenue. The podcast, exclusive to Spotify since 2020, is touted as the most-listened-to globally.

Despite its exclusivity, Spotify revealed plans to expand the reach of Joe Rogan’s show by making it available on other platforms such as Apple, Amazon, and YouTube. The podcast, which debuted in 2009, has featured interviews with prominent figures, including film director Quentin Tarantino, singer Miley Cyrus, and Tesla CEO Elon Musk.

Spotify, headquartered in Sweden, is strategically focusing on enhancing ad revenue through its advertising marketplace for podcast publishers and creators, known as the Spotify Audience Network. The exclusive availability of “The Joe Rogan Experience” on Spotify has significantly boosted overall podcast consumption on the platform, witnessing a remarkable 232% increase. This, in turn, contributed to an 80% revenue surge in 2022 compared to 2021.

The multi-year deal with Joe Rogan is estimated to be valued at up to $250 million, involving an upfront minimum guarantee and a revenue-sharing agreement based on ad sales, according to the Wall Street Journal. However, Spotify declined to comment on the specific terms of the deal, dismissing the reported estimated value as incorrect.

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Spotify initially introduced podcasts in 2015 and made substantial strides into the medium in 2019, acquiring podcast networks Gimlet Media and Anchor FM. The streaming giant also secured exclusive deals with high-profile personalities such as reality TV star Kim Kardashian and former U.S. President Barack Obama. The latest move to extend Joe Rogan’s podcast beyond Spotify signals a strategic shift to broaden the podcast’s accessibility and potentially attract a wider audience.

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