Spotify CEO promises not to ‘overpay’ on podcast deals as Joe Rogan renewal approaches

It’s the final week of the toughest month, and it’s sure to be an eventful week for the audio industry. Spotify announced its first-quarter earnings this morning, reporting that the service’s monthly user count finally surpassed 500 million (515 million) in April. However, Q1 revenue was below expectations — although the platform’s podcast ad revenue was up significantly (20%) from this time last year. Still, Spotify’s days of spending big on podcasts are likely over, CEO Daniel Ek explained on a conference call. We’ll take a closer look below.

Both SiriusXM and Cumulus Media have earnings calls due, and more financial news is expected from the podcast industry on Thursday.

hot pod Today we are also able to exclusively report that SiriusXM and Oprah’s Podcast Network have signed a two-year renewal agreement. More on this below. Also in this issue, Tom Brady threatens to sue his two comedy podcasters over an AI-generated comedy special, and The Webby Awards will honor the winner of that podcast.

SiriusXM and Oprah Winfrey Network Sign Two-Year Renewal Agreement

Oprah’s Super Soul Staying with SiriusXM. According to a previously read press release, hot pod, SiriusXM, and OWN (Oprah Winfrey Network) will announce a renewed two-year agreement that includes exclusive rights to distribute OWN’s suite of podcasts through the SiriusXM Podcast Network. The deal also includes additional resources for developing new his OWN content for SiriusXM, though it is not specified whether Winfrey himself will be involved in this.

Daniel Osit, Vice President of Content Partnerships and Podcast Strategy at SiriusXM said: statement.

SiriusXM will also retain exclusive global audio and video ad distribution rights to OWN’s podcasts, continuing the company’s podcast strategy of focusing on advertising and reach over platform exclusivity.

Renewal is good news for subsequent SiriusXM bloomberg reported last year that OWN was looking for a new home for its podcast shop. SiriusXM’s previous deal with OWN (which he acquired after the Stitcher acquisition) expired late last year. The price of the new contract was not disclosed.

Spotify’s Daniel Ek says the company will be ‘very enthusiastic’ about future content deals

Daniel Ek made it clear that the days of spending a lot of money on podcasts are over. In response to an analyst’s question about investing in podcasts on this morning’s earnings call, Ek said, “You’re right in calling for overpayment and overinvestment. From saying I’m not going to do that. We can start,” he said.

Spotify’s $1 billion spending, which landed platform exclusivity deals with the likes of Joe Rogan and Michelle Obama, catapulted the platform into a leading position in the podcast world, but at a very high cost. The platform has promised to tighten its belts and operate more efficiently this year.

“We will be very diligent about how we invest in future content deals. – If based on relative values, there are very sophisticated tools to measure the impact on the platform.”

Ek’s caveat here is particularly relevant to Spotify’s perpetual number one and controversial host, Joe Rogan (except now, oddly enough).former cause of fearis expected to expire around the end of 2023. “Impact” is one way Ek justifies the millions of dollars Spotify has to spend on updates.

Ek also encouraged the idea that with Spotify’s dominance in the podcasting world, deals with expensive talent might not actually be that expensive on a per-user basis. “We are currently the largest podcasting platform, so that means we have an opportunity to amortize on a larger base,” he said. “So we should be in a better position compared to smaller companies if they want to renew their contracts.”

The platform this morning reported a net loss of €225 million (approximately $248 million) in the first quarter this quarter, but saw growth in user growth (now 515 million MAU) and 210 million now. Exceeded expectations of premium subscribers. Quarterly revenue increased (up 14% year-on-year to around €3 billion), but still falls short of Spotify’s target of €3.1 billion.

Podcast ad revenue grew 20% year-over-year, driven primarily by Spotify originals and exclusives. However, the podcast business is not yet profitable, and the company declined to provide updated projections on when that might change.

No subscription price increase was announced during the call, but Ek assured investors today that the increase will take place in 2023. Ek also announced that Spotify’s flashy new design, which will significantly impact the look and feel of audiobooks and podcasts, will be rolling out on the platform “for the quarter.” Ek also hinted that future AI and machine learning upgrades are coming in the future, resulting in years of “compound improvements.”

Tom Brady threatens to sue comedy podcaster over AI-generated special

Comedians Will Sasso and Chad Kurtgen — the duo behind come Podcast — Tampa Bay Buccaneers quarterback Tom Brady does a standup routine and boiling water is poured over animated segments complete with AI-generated voice clones. Brady’s cartoon, which was included in his hour-long comedy special that the comedian posted last week, caught the attention of millions of viewers on YouTube, including Brady himself. The football star’s legal team immediately sent a cease and desist letter. comeand the podcaster has since removed the special.

“Mr. Brady will defend against the personal financial gain of Mr. Sasso and Mr. Kurtgen, especially if Mr. Sasso and Mr. Kurtgen present Mr. Brady’s likeness in connection with highly offensive and defamatory material.” We will not allow Dudesy to take advantage of his publicity rights,” said Brady’s attorney, in a letter read out loud by Dudesy in the following episode.

Naturally, celebrities don’t like AI-generated impersonations of themselves going viral on the internet. It’s going to be slippery, kids,” he tweeted. I am not joking. The intersection of AI and law is far from in its infancy. User-generated content platforms like YouTube are in a tricky legal area. Satire and parody are protected forms of speech, south park‘s long-suffering legal team), it is unlikely that most creators will be able to afford the legal costs of defending their AI creations in court.

Audible Wins Webby’s Podcast Company of the Year

The winners of the 2023 Webby Awards, including the Podcast category, were announced this morning. You can see the full list of winners here. Audible recorded the most wins and nods across all podcast categories — an impressive four wins ( The Big Lie, The Sandman: Act 3, and Find Tamika — John Legend’s Podcast Wins People’s Choice Award living legendFinally, this year’s Webby podcast is smart dress — Popular comedy podcast with Jason Bateman, Sean Hayes and Will Arnett.

Today is up to here.come back to the insider edition of hot pod on thursday.