Spotify has claimed its largest podcasting victory but. On Tuesday, the Swedish streaming large introduced an unique cope with comic Joe Rogan, who has the primary podcast on this planet.
It’s a significant pivot for Rogan, who has stored his podcast, The Joe Rogan Experience, unbiased since launching it in 2009. He will retain possession and full editorial management of the present, which will probably be accessible on Spotify beginning in September and turn into unique to the platform on the finish of the yr. The video model of the podcast, which at present streams on YouTube, will solely be accessible in full on Spotify, as nicely.
The podcast has advanced into a significant money-maker for Rogan, who had been greatest recognized for internet hosting Fear Factor and supporting roles in sitcoms like Newsradio earlier than beginning The Joe Rogan Experience. He has claimed that his present will get as many as 190 million downloads monthly. Between advert income, dwell exhibits and YouTube broadcasts of this system, Rogan made $30 million final yr, making him Forbes’ highest-paid podcaster of 2019.
With this new association, Rogan’s future earnings will dwarf that determine. Terms of the deal weren’t disclosed however the Wall Street Journal is reporting that the deal is value greater than $100 million. Spotify has been prepared to pay fats sums as a way to get the most important names within the enterprise. It shelled out $155 million for Bill Simmons’ The Ringer earlier this yr (with one other $51 million coming down the pike), and $194 million for Alex Blumberg and Matt Lieber’s Gimlet. In pursuing Rogan, the streamer is seeking to convert his huge fanbase into subscribers. For Rogan, the cash could also be too good to move up.
“It’s the Howard Stern move,” says an business knowledgeable, who estimates that Rogan’s cope with Spotify will probably be as profitable as Stern’s with Sirius XM. Forbes estimates that Stern made $93 million in 2019.
Spotify’s inventory shot up on information of the deal. It closed up eight.four% on Tuesday, including greater than a $1 billion to its market cap by the top of the day. Its founder Daniel Ek is now value $2.eight billion, and is $86 million richer than earlier than the announcement.