Top podcasting stars are now being offered huge deals by media companies, with figures reaching the nine-figure range. This trend highlights a shift in the audio landscape as major streaming platforms move away from exclusive broadcast deals in favor of distribution and advertising rights. Recent deals include the Kelce brothers’ $100 million deal with Amazon’s Wondery, SiriusXM acquiring distribution rights for “SmartLess” podcast, Spotify signing a multiyear deal with Joe Rogan, and Alex Cooper moving to SiriusXM for $125 million for her podcast “Call Her Daddy.”
The return of major podcast companies paying stars huge sums for their shows now involves advertising and distribution deals, allowing content to be published across different platforms. This is a departure from the previous strategy of signing exclusive deals with stars to attract new subscribers and advertising revenue. However, these previous exclusive deals often did not yield the desired results, with risks involved in the content production and potential controversies that could arise from the podcasters themselves.
One example of such a deal that did not meet expectations was Spotify’s partnership with Prince Harry and Meghan, which only produced one series and a holiday special. This led to the couple parting ways with Spotify, amid slumping ad sales and reorganization within the company. The shift towards exclusive distribution deals while granting advertising control to a single company is seen as a potentially lucrative path forward that spreads risk across different platforms.
Under such deals, platforms grant exclusive ad sales and distribution rights to podcasts while retaining control over advertising revenue. These partnerships, involving some of the industry’s most popular podcasts, do not necessarily involve paying out the full amount upfront, as deals may involve reaching certain milestones in the future. The growth in podcast ad revenue suggests a positive trend for the industry, with advertisers increasing spending on podcasts and overall revenue expected to surpass $2 billion in 2024.
While podcasting was previously seen as niche, it has now become more mainstream, with a large number of Americans regularly listening to podcasts. Major players like Spotify continue to see growth in paid subscribers, with positive performance in podcasts contributing to the company’s overall revenue. The future of these multimillion-dollar podcast deals remains uncertain, as unexpected issues could arise that may impact their long-term profitability. However, for now, platforms are increasingly signing podcasters to deals that focus on revenue generation through advertising and distribution rights.
