Will Spotify’s licensing deal with Joe Rogan pay off?
of top podcasts.) The streaming giant paid handsomely, a reported $100 million for a multi-year licensing agreement for a global exclusive.1. 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.3. 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.
The Rogan deal represents a non-threatening power shift for music companies. Any new subscriber Rogan -- or Michelle Obama, whoher first Spotify podcast on Thursday, -- attracts will result in incremental royalties for music rights holders. As music subscription services use podcasts to morph into audio companies, some fraction of record labels’ and music publishers’ growth will depend on podcasts’ ability to lure and retain subscribers.
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