Spotify has entered into a new agreement with controversial podcast star Joe Rogan, which will allow his popular series to reach many more people, the Wall Street Journal reports.
Rogan’s new deal is estimated to be worth up to $250 million over several years, and includes a minimum salary for him as well as sharing in the revenue that comes from advertising sales.
With the new agreement, Spotify will be able to sell ads for and distribute “The Joe Rogan Experience” on several podcast platforms, including as a video on YouTube. Under the previous agreement, the program was only broadcast on Spotify.
The show is by far the most popular podcast on Spotify.
The agreement also shows how the conditions within podcast financing have changed in a few years. Because while it was important for Spotify to have Rogan exclusively in 2020, when they said they were willing to pay at least $100 million for him to come to their platform, the company is now focusing on distributing programs on multiple platforms to maximize the audience and advertising sales.
Shares in the income
Spotify spent a lot of money to build up the podcast part of the company, and fought hard with Apple to become the biggest platform. Now, on the other hand, the company is working to become more disciplined with podcast expenses, and in that connection the company wants to provide less pre-guaranteed payments on a general basis and rather focus on income sharing, where the risk is more evenly distributed with the artist, writes the Wall Street Journal.
Rogan has recorded over 2,200 episodes of “The Joe Rogan Experience,” and he believes part of the secret to his success lies in his genuine interest in what his guest has to say.
– I never make a podcast just because a person is popular. It always comes from the thought, “I think it would be cool to talk to that person,” he says in a Spotify blog post announcing the new deal.