You may be asking yourself “Why did Spotify just give Joe Rogan an even bigger deal than they did the first time?”
Didn’t Joe make them look bad? Aren’t Spotify’s stocks down? I thought they didn’t pay the musicians anything?! How? Why?
In case you live under a podcasting rock, the ‘Joe Rogan Experience’ is the most popular podcast on the planet. The show reaches 190 million monthly downloads and 5 years ago, Spotify signed him for a mind-blowing exclusive deal worth $200,000,000.
It wasn’t all smooth sailing for Spotify. As expected, Rogan triggered a few people and a very small amount of advertisers bailed over the length of the deal. Hopefully, by now, Neil Young has calmed down?
But Spotify stood by their man and it looks like it’s going to pay off in huge ways!
By making another deal with Rogan and upping it to $250,000,000, they more than likely (as part of the contract) said, ok… our return on the $200,000,000 we gave you the 1st time was fine but we want more! We’re gonna up the stakes Joe!
How’s this sound? …
We’ll give you $250,000,000 but this time, we open you up on other platforms along with Spotify?
Platforms like YouTube, Apple, Amazon and X. You’re free from the exclusivity part of the contract BUT we get all the revenue for the next 4 years from every platform you’re on. (Or a very large percentage of the revenue).
The more I think about this deal, the more genius it becomes. In 4 years, Spotify will surely make over 1 billion in advertising revenue from all of the platforms Rogan is on. Think about it…
They not only make returns on new episodes of JRE but they pull out the last 4 years and make money on the episodes from the Spotify years.
If you don’t know, Joe releases at the very least, 3 episodes a week. To do some conservative math, that’s 365 x 3 = 1,095 episodes a year x 4 years = 4,260 episodes from the back Spotify catalog and all of that can be monetized. THAT’S NOT INCLUDING THE PRE-SPOTIFY YEARS!!!! An even more mind-blowing consideration… Before Spotify, Joe built his podcast up over a decade. 10 years of money to make off thousands and thousands of older episodes.
Spotify is now in the podcasting syndication game and their stocks just went up because of it. It was more than a smart move! It was brilliance on the part of Spotify.
Best of all for Rogan, in 4 years, if he decides not to resign with Spotify, all that revenue becomes his. All of it! Spotify basically built him a financial empire.
If I was Joe Rogan, I’d sit back for the next 4 years and let Spotify do all the work. Then decide if he wants to get in the billionaire game and take control of the intellectual property that will once again become his.
This isn’t just a win for Rogan and Spotify, it’s a win for podcasters! If this type of podcasting syndication works, it opens doors for other podcasters to sign under Spotify.