Spotify has reportedly spent less than 10 percent of its Joe Rogan apology fund (updated)

Spotify’s financial apology for Joe Rogan’s comments may not be much so far. bloomberg Sources say the streaming service has spent less than 10% in the first year of operation of the $100 million Creator Equity Fund, a pool aimed at promoting diversity in podcasts and music. . The company reportedly planned to spend all the money he had over three years, but he lacked a solid structure to approve spending and has been slow to hire staff. Shifting priorities are also hurting projects, insiders say.

Union members of Spotify’s podcast network, Percast, once criticized the company for underspending. In February, they complained to management that the company had approved only $5,000 of the $100,000 allocated for diversity plans.

Spotify didn’t mention the funding claim in a statement to Engadget. Instead, he pointed to projects the fund has supported in the past. This includes the LGBTQ music promotion program Glow, marketing campaigns for black artists such as Kaytranada, and the recent expansion of the NextGen podcast funding initiative to support development at historically black colleges and universities. The Creator Equity Fund is also used to support Latinx/Latino creators.

The company created the fund after an artist-led backlash that alleged Joe Rogan spread misinformation about the COVID-19 vaccine through a Spotify-exclusive podcast. That was the trigger, but critics also noted that Logan used racist language and made transphobic statements. Spotify has repeatedly defended signing Rogan in 2020, but has pulled some of the episodes that contained racist language, and the deal with the podcaster means at least he’s worth $200 million. Worthwhile and rumored to last 3.5 years.

No wonder Spotify spends more on diversity funds. But the apparent shortfall in spending does nothing for Spotify’s claims. If the reports are accurate, the company is struggling to deliver on its promises to listeners concerned that the service is amplifying hate and other dangerous falsehoods.

Update 3/22 4:37 PM ET: In a follow-up, a Spotify spokesperson now says the company has spent more than 10% of the fund. The company did not disclose specific numbers.