Read on Twitter
Big news yesterday with @joerogan announcing that he's signed a $100M exclusive licensing deal with Spotify
There will be lots of short and long term effects of this move. Here's a look at what this will mean for Joe, for Spotify and the podcasting market in general
A thread
There will be lots of short and long term effects of this move. Here's a look at what this will mean for Joe, for Spotify and the podcasting market in general
A thread
1) For Joe: Podcasting is a serious grind and publishing almost 1,500 episodes is no joke.
This deal lets him retain creative control and do what he is best at (creating content) without having to worry about managing/dealing with YouTube or other potential brand sponsors
This deal lets him retain creative control and do what he is best at (creating content) without having to worry about managing/dealing with YouTube or other potential brand sponsors
2) Views: A significant number of his monthly views would come from organic searches (YT is the #2 search engine). His monthly DL numbers aren't just from new episodes, but a big % would be old eps being recommended to viewers.
Short term he loses this with the switch to Spotify
Short term he loses this with the switch to Spotify
3) Depth not width: BUT His most loyal followers will follow him whatever platform he is on (Spotify is banking on this - see below). He might lose some viewers in the short term, but he will retain the impact from his audience because this number is still significant
4) Spotify ROI: Spotify has already seen a $1B spike in market value since making the announcement. On top of this a significant new customer base will switch over and become paid subs.
In time, this will be fantastic deal for Spotify. Joe will have underpriced his value
In time, this will be fantastic deal for Spotify. Joe will have underpriced his value
5) More to follow: In a world where content is king, content ownership is everything.
Spotify will start picking up popular podcasts and working out similar exclusive licensing deals (but for much less $$$).
Spotify will start picking up popular podcasts and working out similar exclusive licensing deals (but for much less $$$).
6) Brand: As a podcaster, iTunes was always the default podcasting platform. With this play, every podcaster (and perhaps audience?) starts redirecting promotion of new episodes to Spotify rather than iTunes feed as default.
Big and massively undervalued opportunity to win here.
Big and massively undervalued opportunity to win here.
7) Plugging the gap: The hole that will be left (especially on YouTube) will be massive and it creates a big opportunity, but this will not directly shift to 1 podcast or even stay on YT.
Podcasts are passive forms of entertainment + education. Will see a spike in audiobooks
Podcasts are passive forms of entertainment + education. Will see a spike in audiobooks
8) hobby -> job: This is the first big "exit" for podcasts and it's also the first big leap in turning an early market to becoming a professional industry (much like YT creators).
Expected quality of podcasts will rise and media grade production will become more normalised
Expected quality of podcasts will rise and media grade production will become more normalised
9) Overall:
- Big win for Spotify
- Decent payoff for Joe Rogan
- New age for the world of podcasts and a big opportunity for content creators and brands to capture attention of a large audience
- Big win for Spotify
- Decent payoff for Joe Rogan
- New age for the world of podcasts and a big opportunity for content creators and brands to capture attention of a large audience
