Spotify's Billion-Dollar Gamble: Is Exclusive Content Worth It?

In this episode, we take a look at the evolving landscape of podcast exclusivity, a trend that has taken the industry by storm. This includes how major platforms are competing fiercely for exclusive content, echoing the earlier transitions seen in the television industry from cable to streaming services.

We also explore Spotify's aggressive acquisition strategy and their staggering investments, including the $200 million deal for Joe Rogan and the billion-dollar commitment to becoming a dominant player in the podcasting space.

This spending spree raises questions about the long-term sustainability of such a model and whether it will truly benefit creators and audiences alike.

Takeaways:

• Exclusive podcast deals are changing the landscape of the industry, similar to the transition from cable to streaming.
• Spotify's significant financial investments, including over a billion dollars, indicate their aggressive push for dominance in podcasting.
• Some creators, like the Obamas, are stepping away from exclusivity for broader audience reach and engagement.
• Listener habits are crucial in shaping the future of podcasting and platform success.
• Reports suggest that exclusive shows have seen listener drops as steep as 75%, raising concerns for Spotify.
• The podcasting showdown continues as both Spotify and Apple vie for premium content and audience engagement.

Companies mentioned in this episode:

• Spotify
• Netflix
• Gimlet Media
• The Ringer
• Parkhast
• Disney
• BBC
• Slate

Products Used for Be a Better Podcaster

Note: these may contain affiliate links, so I get a small percentage of any product you buy when using my link.

Equipment:

• Google NotebookLM
• Hindenburg Pro
• Auphonic

Recommended resources:

• Captivate.fm
• Substack
• Boomcaster remote interviewing

Be a Better Podcaster is a tips and growth podcast brought to you by Jamie and Jaayne. These are AI hosts - their voices are auto-generated, reading content created by Danny Brown, host of One Minute Podcast Tips and 5 Random Questions.

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Episode Transcript

(00:20):
Hey there, and welcome to adeep dive that's really going to
get those ears buzzing. We are diving
deep into a topic that's making waves
in the podcasting world right now.
Exclusive deals. You know those big
money moves where platforms try to
lock down your favorite shows and
keep them all for themselves?
Yeah, it's a big shift in theindustry, for sure. Kind of reminds
meof the whole cable tv to streaming
revolution we saw a few years back.

(00:43):
Totally. Speaking of massiveshifts, Spotify has been on a spending
spree, dropping some serious coin
tobecome, like, the go to podcast platform.
Yeah, they're really trying tocorner the market, aren't they?
It's like they're taking apage right out of Netflix's playbook.
Absolutely. They want to besynonymous with podcasts, just like
Netflix is with streaming. And they
are not messing around. We're talking
over a billion dollars invested in
this strategy.

(01:09):
A billion with a b. Yeah, it'sa huge statement.
Like back in 2020, rememberwhen they spent 200 million just
toget Joe Rogan?
Yeah, the Joe Roganexperience, exclusively on their
platform. 200 million for one show.
And that was just thebeginning. Gimlet Media, the Ringer,
Parkhast, all brought under the Spotify
umbrella.

(01:30):
Wow.
They even acquired a couple ofpodcast analytics companies, too.
They are serious about this.
Dead serious.
So what's the end game here?Are they just trying to hoard all
the best podcasts and make everyone
elsepay to listen?
Well, it's all about control,isn't it? Creating that gotta have
it factor. They're betting big on
targeted advertising and a subscription
model. Kind of like what Disney did
with their exclusive content.

(01:53):
Hmm. Yeah, you got a pointthere. So they're hoping to cash
inwith subscriptions and targeted ads.
That's the plan anyway.
But is it gonna work? That'sthe billion dollar question, isn't
it?
Right? Will it be enough? Bigquestion. It's a gamble, for sure.
It's not exactly a sure thing,is it? I mean, it's not like Disney,
where they've got these massive franchises
like Star wars and Marvel. With podcasts,
it seems like it's more about the
individual shows or hosts. Right,
right. So what happens when that
shine wears off? Are people really
gonna subscribe to a whole platform
justfor one or two shows?

(02:27):
That's what Spotify is banking on.
And on the flip side. Yeah.What about the creators? Are they
all happy about being tied to one
platform?
Well, not all of them. Somebig names have actually walked away
from their Spotify exclusive.
Are they?
Yeah, they said, see you laterto all that Spotify cash.
Who's brave enough to walkaway from all that money?
Well, the Obamas for one.
Oh, way.
Yeah. They ended theirexclusive deal with Spotify.

(02:49):
Wow. So even the Obamas aresaying no to exclusivity?
It seems so. They said theywere concerned about limited reach.
So for them, reaching a wideraudience was more important than
being tied to a single platform.
It seems that way.
Huh. Interesting.
And the Obamas arent the onlyones. Last podcasts on the left.
Haveyou heard of them?
Yeah, ive heard of them.
Really popular comedy, horror show.

(03:10):
Yeah, theyre hilarious.
They also ditched theirSpotify exclusive deal. They said
they wanted to go back to being on
multiple platforms.
So it's about more than justthe money for some creators, it's
about getting their voices heard
byas many people as possible. But let's
be real for a second. Spotify dropped
abillion dollars on this strategy.
They'renot just gonna throw that money away
without a fight, right?

(03:34):
Of course not. They're hopingto make that money back and then
some.
And how are they planning todo that?
Well, they're banking onattracting more paying subscribers
andselling more targeted advertising.
Right.
Those make sense.
But here's the thing. Somereports are saying that certain shows
actually lost listeners after going
exclusive.
Really?
Yeah. Like a significant chunkof their audience just disappeared.

(03:57):
How is that even possible?
Well, think about it. Ifpeople have to go out of their way
to download a whole new app just
tolisten to one show, right. Some of
them just aren't going to bother.
I guess that makes sense.
And for some people, its noteven just about the inconvenience.
They mightnot want to support this whole exclusive
content thing on principle.
Yeah, I can see that. So howmany listeners are we talking about
here? Like a small dip or a full
on exodus?

(04:20):
Some reports suggest a drop assteep as 75% in certain cases.
75%? Are you serious?
Thats what theyre saying.
Thats insane. If that manypeople bailed when their favorite
showswent pie to paywallen, you gotta
wonder if this whole exclusive thing
is gonna backfire on Spotify.
It's a real possibility.
And what does that mean foradvertisers if fewer people are listening
because they can't easily access
the content?

(04:44):
That's a big problem foradvertisers because advertisers pay
for reach. And if the reach isn't
there, they're gonna take their money
elsewhere.
So it's a domino effect. Yeah.Fewer listeners mean less attractive
toadvertisers. Which means less money
for Spotify and potentially less
incentive for big names to stay exclusive.
It's a chain reaction.
This is getting complicated.

(05:05):
And to make things even moreinteresting, it's not just Spotify
playing this game. Apple's been making
some moves too. Yeah, they've been
partnering with big names like the
BBC and slate to offer premium content
through their subscription service.
So it's like a podcasting showdown.
That's one way to put it.
Exclusivity versus openaccess. Who will reign supreme?

(05:27):
Thats the million dollarquestion. And the answer might surprise
you.
Oh, how so?
Because its not just up to the platforms.
What do you mean?
The listeners have a say inthis too.
Oh, interesting.
In fact you could say that thelisteners hold the real power.
Us?
Yes, you, the listener. Oh, sobecause ultimately its the listeners
whodecide which platforms and which
shows succeed or fail.

(05:47):
I guess thats true.
Think about it. Every time youhit play on a podcast, you're casting
avote. You're saying, I like this
show, I like this platform. Or you're
saying, this isn't for me. And those
votes add up. They determine what
kind of content gets made and how
that content gets delivered.
So it's like a democracy ofthe ears.
Exactly.
That the people have the power.

(06:08):
That's right.
So what can listeners do tomake their voices heard?
Well, the most important thingis to be mindful of your listening
habits.
Okay.
Ask yourself, am I listeningto shows on multiple platforms?
Okay.
Or am I sticking to just oneor two?
Okay.
Am I willing to pay forpremium content or am I only interested
infree stuff?

(06:30):
Okay. Those are good things tothink about.
And most importantly, don't beafraid to experiment.
What do you mean?
Try out different podcast apps.
Okay.
See what you like. See whatyou don't like.
Okay.
And let your listening habitsbe your guide.
Because ultimately, it's thelisteners who decide the fate of
the podcasting world.
That's right.
It's a powerful position to be in.

(06:51):
It is.
And with great power comesgreat responsibility.
Well said.
I think we've given ourlisteners a lot to think about today.
I hope so.
It's a fascinating time to bea podcast fan.
It really is.
And with all these changeshappening, it's.
Only going to get moreinteresting from here. So buckle
uplisteners, and get ready for the
ride.
Because the future ofpodcasting is in your hands.

(07:11):
Or maybe I should say your ears.
You know what's so interestingabout all this? It's not just about
platforms duking it out, you know,
throwing money around. It's about
thecreators, the voices we love, trying
to figure out how to navigate this
whole new world of podcasting.
Yeah, it really is a newfrontier, isn't it?
It really is. And for manypodcasters, it seems like it boils
down to one reach.

(07:34):
Yeah, reach is huge.
They want their message, theirstories, their jokes to land with
asmany listeners as possible.
And who can blame them for that?
I know, right? And that bringsus back to you, dear listener. Because
believe it or not, you actually have
a huge say in how this whole exclusive
content thing plays out.

(07:55):
Yeah, your listening habitsactually matter.
They really do.
Think about it. Do you stickto one podcast app like it's the
only one out there?
Yeah. Are you a creature ofhabit or.
Are you an audio adventurerhopping between platforms to catch
all your must listen shows?
I like that audio adventure.
Gotta keep things interesting.
So true.
And here's another big one.Would you actually open your wallet
and pay a premium to unlock your
favorite shows if they were stuck
behind a paywall?

(08:20):
That's the million dollarquestion right there.
These are the questions thatare shaping the future of podcasting.
It's like we're all part ofthis giant experiment.
That's a good way to put it.
Except the lab is ourheadphones, right? Every time we
hit play or subscribe or even unsubscribe,
were sending a message about what
matters to us as listeners.
So choose wisely. Indeed, thefuture of podcasting isnt just about
which platform throws the most money
around, its about what listeners
actuallychoose to listen to.

(08:49):
So the power is in your hands,dear listener.
Or maybe I should say your ears.
Thats a good one. The power ofthe earbud.
Its a real thing.
Well said. Thanks for joiningus for this deep dive into the wild
world of podcast exclusives. It's
been an earful. It has. But hey,
we've all learned a lot, haven't
we?
I know I have.
And who knows what the futureholds for podcasting. But one thing's
for sure, it's gonna be an interesting
ride. Buckle up listener, we'll catch
you in the next episode.