Skip to comments.What Will It Take for Spotify's Joe Rogan Deal to Pay Off? [$100 million for podcast exclusive]
Posted on 08/29/2020 11:45:15 AM PDT by SunkenCiv
Amidst a flurry of dealmaking for original content was Spotify's exclusive deal with Joe Rogan's widely popular podcast, The Joe Rogan Experience. Obviously, Spotify wants JRE, launched in December 2009, because it's one of -- if not the -- most popular podcasts in the U.S. and a handful of other countries. (JRE is currently No. 2 on Chartable's list of Apple podcasts in the U.S. and No. 1 on Stitcher's list of top podcasts.) The streaming giant paid handsomely, a reported $100 million for a multi-year licensing agreement for a global exclusive.
At first blush, nine figures seems like a ridiculous sum for a single podcast without ownership. But $100 million isn't obscene for a fast-growing company that had about $7.4 billion of revenue last year and expects between $8.4 billion and $8.8 billion this year.
- Spotify's licensing deal with the Joe Rogan Experience podcast for a reported $100 million can pay for itself by attracting fewer than 2 million subscribers.
- Record labels and music publishers benefit when podcasts help attract and retain subscribers.
- Los Angeles-based Rogan already has an audience outside of the U.S. But Spotify can use its global presence to help Rogan gain international fans.
By Billboard's rough estimate, the Rogan deal pays off if he -- and he alone -- attracts 1.2 million to 1.7 million subscribers with a low churn rate, high ARPU (average revenue per user) and average gross margin. (Of course, Spotify must accurately isolate Rogan's effect on its already-strong growth.) This isn't a move to generate more advertising (see below); this is -- or should be -- an effort to gain loyal customers. Spotify need not change its primary goals of getting more subscribers and reducing churn.
(Excerpt) Read more at billboard.com ...
LA based Rogan says LA is a cesspool and he’s moving to Austin Texas.
2 million subscribers- i know he’s popular, but is he that popular?
I’m trying to figure out who Joe Rogan is.
Austin is the Berkley of Texas. He may be surprised how lefty his neighbors are after he settles in.
He’s in LA so I don’t think he will mind.
Plus, imagine how much money in taxes he will save.
He was in the series “Newsradio”. He had a full head of hair then.
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