Why Spotify bought Joe Rogan’s Podcast?
Updated: Jun 28, 2020
Joe Rogan’s podcast “The Joe Rogan Experience” became a Spotify exclusive. This is Huge!
The Joe Rogan Experience is a free audio and video podcast hosted by American comedian, actor, sports commentator, martial artist, and television host, Joe Rogan. It was launched on December 24, 2009, by Rogan and comedian Brian Redban, who also produced and co-hosted.
The company is reportedly spending more than a $100 million to make the show an exclusive which hasn’t even been on Spotify up until now. But when you hear the name Spotify, Music is the first thing that comes to your mind. So why is the company spending so much on an audio show? Let’s find out.
This deal is company’s essential plan in becoming the biggest name in audio and podcasting. Spotify entered the audio and podcasting industry in 2019 with three acquisitions. The company bought two podcast networks GIMLET MEDIA ($195M) and PARCAST ($55M). They also bought ANCHOR ($154). Then this year, Spotify also acquired THE RINGER and Bill Simmons Flagship show ($196M). This was a lot of money spent as an effort to lock down industry’s top content and turning it into Spotify’s library. But this strategy hasn’t worked for Spotify before so why is it investing so much in podcasts now?
This time it’s about getting people to use their app. The Joe Rogan Experience is one of the most searched podcast and Spotify just needed to be the place where people listen to it. This is significant, The Joe Rogan Experience is free to listen to. People don’t have to buy Spotify premium to listen to the podcast. Instead, people pay with their data.
Now, Spotify is a company which makes content, has a popular podcast player, sells ads and provides tools to content creators for their own shows. Names like Joe Rogan bring people to the platform but a large show library keeps them there. The company also launched video podcasts in app which allows it to sway some of YouTube’s popular podcasters, over to its platform. This is a big opportunity for Spotify because the competition isn’t very strong. Up until now, Apple has been a very big name in podcasting but it has left its podcasting service for people to come and go and allowing creators freely to upload their shows without trying to make one an exclusive. Podcasts can be lucrative for the company which is why although it is spending hundreds of millions of dollars on tools and talent for it’s platform, it’ll likely make that money back.
How will this affect the broader podcasting industry?
Spotify has full control of its system including the data which informs not only its own purchasing decisions, but also its ad targeting. If the technology takes off, the podcasts ads will closely resemble web ads targeting to individual listeners. This can raise some privacy concerns. Podcasting was once equal across all platforms, but now its Spotify vs. Everybody else.