The Podcasting Game Changer
Podcasting is a medium that I am enarmoured with and when Joe Rogan signed an exclusivity deal with Spotify, the medium had finally arrived on the big stages. Spotify has now captured the Whale of Podcasting, The industry leader or whatever term you want to use for it. This is a big deal not just for podcasting, but also for media companies, advertisers, radio stations and everybody who consumes content.
The deal is reported to be worth $100 million dollars but given that Rogan made $35 million last year, it could possibly be worth closer to $200 million or more when you add bonuses. Whilst this is a lot of money to shell out for a podcast or anything, the numbers and the reach of Rogan justify this. After the deal was done, Spotify’s stock price was up $5 billion or 7% which is more than enough to cover the cost of the deal. In terms of reach, Rogan gets close to 190 million downloads per month of his podcast, which is an insane number. That is over half the US population listening in to the podcast. That is just a measure of how big the platform is.
Rogan releases 3 or 4 episodes per week and posts clips that get lots of views of Youtube in order to feed fans that may not have the time for a full 3 hour podcast episode. The podcast has been running for 11 years and its clear Spotify needed him more than he needed them. Spotify has also acquired other assets in podcasting, notably the purchase of Gimlet media. This is likely so that they can become the go to place for podcast listening. Its a mirror image of how Netflix has heavily invested in comedy in order to give it a competitive advantage.
What makes this podcast so interesting is the range of guests that Rogan has come every week. Its an eclectic bunch that have different views, talents, creeds and polar opposites. He has had Elon Musk, Alex Jones, Dr. Cornell West, The RZA, Bernie Sanders and multiple MMA fighters.
Rogan is also a stand-up comedian, UFC commentator and the former host of the popular show “Fear Factor.” These endeavors have allowed him to create a vast network of people to call on to interview. His guests also enjoy coming to his podcast because of the “Rogan Effect”, this is effectively an increased interest or a greater spotlight on your business and what you do.
Advertisers
Advertising is how many podcasts make money and the Joe Rogan Experience is no different. An episode usually starts with 7 mins of ads, 7 mins!! That is plenty of advertising. It shows how people really wanted to be on his platform. This deal exhibits to advertisers that they do not always have to target radio in order to get their product out there. There are other mediums that work and in the case of Rogan, a very loyal fanbase that is dialed in. Given an episode is 2 to 3 hours, if you advertise you know that people are really tuned in because its a big commitment to listen to the podcast.
People are creating new podcasts everyday and I for-see more marketing dollars going towards some of these podcasts. Similar to how 300 hours or more are uploaded to Youtube every minute, podcasts are next in line for this revolution. Podcasts can also be packaged in any format, from interview based to stories and series. For advertisers they can now go directly to the creators of these podcasts and tap into a tentative audience.
Radio dollars will still remain because radio is more mass market, whilst podcasts are a more niche product, but that is open to change with this Rogan deal and it will be interesting to see where the industry is after the deal is done.
Below is an inspirational episode for your viewing and listening pleasure…
