The multi-year agreement was one of the largest ever signed for a newly formed podcast show, seen as a perfect fit for Spotify’s business model and its goal of expanding its global audience of 320 million monthly active users.
However, the prestigious partnership has come to an early conclusion, with Meghan’s podcast “Archetypes” not receiving a second season. The reason behind this decision lies in Spotify’s change in strategy, moving away from high-cost exclusive deals with celebrities that fail to meet listener targets.
In 2020, Spotify made headlines by announcing approximately £200 million worth of exclusive deals with prominent figures in the entertainment industry. This included Michelle Obama’s “The Michelle Obama Podcast” and an exclusive deal with Kim Kardashian. However, three years later, Spotify has shifted gears, discontinuing expensive celebrity contracts that do not generate sufficient listenership, even after investing over $1 billion in exclusive content.
Last year, Spotify terminated its deal with the Obamas, and now the Duke and Duchess of Sussex are the latest casualties as the music streaming giant aims to streamline expenses. Spotify’s CEO, Daniel Ek, acknowledged that the company had been overpaying and overinvesting, prompting a more diligent approach to future content deals. The company will evaluate the performance and relative value of each contract on a case-by-case basis.
While Spotify continues to retain controversial entertainer Joe Rogan, who signed a $200 million deal in 2020, the contrasting work ethic between Meghan and other podcasters played a role in the decision. Meghan produced only 13 hours of content last year, consisting of 12 episodes of “Archetypes” and a holiday special. In comparison, Rogan consistently releases multiple multi-hour episodes each week, attracting an average audience of 11 million listeners.
As a result of this strategic shift, Meghan intends to develop further content for the Archetypes audience on a different platform, as stated by her spokesperson to the Wall Street Journal.
In a separate incident, Bill Simmons, Head of Podcast Innovation and Monetization at Spotify, expressed negative sentiments about the royal couple, referring to them as “f***ing grifters” in an episode of his own podcast. Simmons had previously been critical of the couple and their association with Spotify, stating that being employed by the same company as Prince Harry was “embarrassing.”
The episode demonstrates the challenges and complexities of navigating the entertainment and content production landscape, underscoring the need for platforms like Spotify to justify their financial decisions in an evolving industry.