In a strategic maneuver aimed at capitalizing on the immense popularity of comedian and podcaster Joe Rogan, Spotify Technology SA (SPOT.N) has recently unveiled an exclusive multi-year deal. The primary objective of this deal is to bolster advertising revenue generated through "The Joe Rogan Experience" podcast, an exclusive offering on Spotify since 2020. Originally debuting in 2009, the podcast has evolved into the most-listened-to globally, according to Spotify. The streaming giant now intends to expand its reach by making Joe Rogan's show available on other platforms, including Apple, Amazon, and YouTube.
Noteworthy for Rogan's engaging interviews with prominent personalities such as film director Quentin Tarantino, singer Miley Cyrus, and Tesla CEO Elon Musk, "The Joe Rogan Experience" has significantly contributed to Spotify's podcast consumption. Since the show became exclusive, Spotify has observed a remarkable 232% surge in overall podcast consumption on its platform.
To augment advertising revenue, Spotify is leveraging its advertising marketplace for podcast publishers and creators, known as the Spotify Audience Network. The company reported an impressive 80% increase in revenue last year compared to 2021. While the multi-year deal with Joe Rogan is rumored to be valued at up to $250 million, Spotify has refrained from disclosing specific terms. According to The Wall Street Journal, the deal encompasses an upfront minimum guarantee and a revenue-sharing agreement based on ad sales. However, Spotify has clarified that the reported estimated value of the deal is inaccurate.
Spotify's foray into the podcast realm commenced in 2015, gaining momentum with strategic moves in 2019, including the acquisition of podcast networks Gimlet Media and Anchor FM. Exclusive deals with prominent figures like reality TV star Kim Kardashian and former U.S. President Barack Obama have further solidified Spotify's dominance in the podcasting landscape.