Spotify needs more than a cup of Joe

Joe Rogan raised his eyebrows on Spotify. The question remains whether he can bend many new ears, especially those who are willing to pay for the experience.

The popular podcaster moved his show to a streaming platform on September 1st, with a deal worth more than $ 100 million earlier this year. Spotify has been getting a lot of attention in recent podcasts. He also signed a recent deal with Kim Kardashian and the DC Comics brand and made several acquisitions to enhance the podcast platform. This includes spending $ 235 million earlier this month on megaphones that provide production and advertising services to podcasters.

However, the deal with Mr. Logan is being watched most carefully as it brings an established star with very enthusiastic supporters. Given Logan’s preference to book highly controversial guests like talk radio host Alex Jones, it also brings a fair amount of heat. The recent appearance of the latter has caused some surprises, even among Spotify employees, and even among those who have internally discussed whether the show or others meet the company’s content guidelines. .. Daniel Ek, CEO of Spotify, addressed the issue on the company’s third-quarter phone call last month and confirmed that content policies need to be applied evenly. “If you can’t do that, there are other options that many creators should go to,” he said.

The company will soon know if Logan’s show really deserves a problem. This program will be exclusive to Spotify in December. In short, the company’s fourth-quarter results will first reflect changes in show usage and revenue from fans that aren’t available elsewhere. However, the type of user is also important. The latest Spotify results show that the number of users of free ad-driven services has increased significantly compared to premium tier subscribers. The company added 15 million users to its free tier, compared to 6 million premium subscribers in the third quarter. The company’s forecast shows similar massive growth in the ad-driven segment in the fourth quarter.

Listening to ads isn’t enough to justify Spotify’s investment in podcasts, which will increase the market value that Spotify has gained through its efforts. Spotify’s share price has risen 67% since the announcement of the deal with Rogan in May, albeit with some lag since the third quarter report on October 29.

Spotify needs more than a cup of Joe

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