Celebrity Joe Rogan signs an exclusive multi-million dollar deal with Spotify as they continue to disrupt the market of streaming platforms.
Who is Joe Rogan?
Joe Rogan is a comedian, commentator, actor and TV host. Most recently he has made his fame as a host for his podcast “The Joe Rogan Experience”. The podcast is described on their website as “a long form conversation hosted by comedian Joe Rogan with friends and guests that have included comedians, actors, musicians, MMA fighters, authors, artists, and beyond.” In the spring of last year, the podcast had more than 190 million monthly downloads. This figure has continued to grow as well as being broadcasted on Youtube. It is thought that he gets over 200 million views and listens per month. Rogan, due to his reach, has the potential to influence many people. This has had real life implications for politics and press coverage, after Rogan broadcasted his political views. Rogan made a reported $30 million last year.
The Spotify Deal
Rogan signed an exclusive deal with Spotify moving his podcast, The Joe Rogan Experience, off all other platforms. The Wall Street Journal has estimated this deal to cost a staggering £82 million. The Joe Rogan Experience will be available on Spotify from September 1st. After that, it will be removed from all other listening platforms.
Rogan has claimed that the move to Spotify will have no difference for listeners. The show will still stay the same with no creative inputs from Spotify. It will also still be free for listeners. It is merely a question of licensing. However, his podcasts proves very lucrative for Spotify who make their money through subscribers or ads. Not only will Rogan’s listeners lead to more Spotify subscribers, Spotify will make money off the non-premium members through ad sales. Advertisers can pay between £15 to £41 per 1,000 listeners of a show. The podcast reaches 190 million downloads per month; this would mean a minimum of £2.5 million monthly in ads.
The figures discussed for this deal are not typical of Spotify. The acquisition cost the equivalent of 26 billion streams for a musician on Spotify for his podcast rights. This is controversial as it suggests that Spotify values Rogan more than any musician. It is also one out of a few of Spotify’s recent podcast acquisitions. Earlier this year they acquired The Ringer. Spotify now has a monopoly in the world of streaming and acquisitions of podcasts with a huge following ensure more subscribers. Although Rogan’s show will be free to listen to on Spotify, this is an opportunity for Spotify to sell their more profitable ads.