Spotify has signed another “multi-year” deal with Joe Rogan worth $250 million, but the audio giant will no longer be the sole distributor of his popular podcast, according to the Wall Street Journal. .
A Spotify spokesperson told the Post the Journal’s estimates were “inaccurate” but declined to elaborate on the financial terms of the deal.
However, a new license agreement allows Spotify to sell and distribute ads for “The Joe Rogan Experience” (JRE) on several podcast platforms, including Apple and Amazon, and in video formats on YouTube, a spokesperson said. confirmed this to the Post. .
It also includes a guaranteed minimum upfront payment, as well as a revenue-sharing agreement based on advertising sales, the Journal reported. The move is aimed at maximizing its audience and podcasting revenue model as Spotify seeks to increase profits.
By distributing the JRE more widely, Spotify will be able to make more money from advertising and reach a larger audience.
Spotify announced the deal on Friday. With an interview with Loganhas hosted a podcast that has topped the company’s ranking of the world’s most listened to podcasts every year since 2020, known as Spotify Wrapped. This is an impressive feat considering his average JRE run time is 2 hours and 37 minutes.
A representative for Mr. Logan did not immediately respond to The Post’s request for comment.
The Stockholm, Sweden-based audio giant signed Logan, who started his career in comedy, in 2020 for his first deal.
The 57-year-old Logan’s income was tied to audience goals, and the exclusive licensing agreement signed by the two parties at the time paid him as much as $220 million, according to the Journal.
At the time, Spotify was actively investing in the podcasting space, but it turned out to be an expensive endeavor.
The company announced that it would have to cut 200 jobs by June 2023, or about 2% of its workforce at the time, due to excessive spending.
Shortly before that, Spotify reportedly cut Meghan Markle a check for $18 million to headline a podcast called “Archetypes,” but she struggled to grab the top spot on the Spotify charts. It is believed that the cause was a staff error in judgment.
Ms Markle’s multi-million dollar pay is in line with top podcasters including Mr Rogan, ‘Call Her Daddy’ host Alex Cooper and ‘Anything Goes With Emma Chamberlain’ star Emma Chamberlain. It was part of a massive $1 billion bet on podcasting that has paid off handsomely. That’s because Spotify had to cut jobs behind the scenes to accommodate the investment.
Spotify implemented three layoffs throughout 2023, laying off 2,300 employees.
Before the news of his new deal with Spotify was announced, Logan, whose podcast had skyrocketed in popularity, Analysts say the podcast, which draws an estimated 11 million listeners per episode, will spin out on its own by forming a media company to distribute the podcast and produce other content that appeals to its fan base.
Others say Rogan brought the show to Elon Musk’s X platform after the two famously smoked weed on a podcast, which puts the Tesla and SpaceX CEOs in trouble. I guessed that it was.
