When Spotify signed Prince Harry and and Meghan Markle, the Duke and Duchess of Sussex to an exclusive deal worth allegedly $20 million in 2020, the controversial royal couple was taking their first steps into the business world, and podcasts were thriving.
Some believe that Prince Harry and Meghan’s brand has diminished, and Spotify is lowering its reliance on major celebrity signings and expensive original content, which have hurt on its financial line.
Meghan’s podcast was one of the most high-profile losses this week when Spotify and the duke and duchess’ Archewell Audio announced a mutual decision to separate ways.
Spotify’s contract with Barack and Michelle Obama’s production firm expired last year.
Since then, Spotify has laid off hundreds of employees, primarily in its podcasting operation, which it acquired for more than $400 million just a few years ago.
During a conference call with financial analysts earlier this year, Spotify CEO Daniel Ek said the company made some mistakes during the more than $1 billion spending spree that preceded its 2019 effort to establish itself as an industry leader.
“You are correct in pointing out overpaying and over-investing,” he stated.
“We’re going to be very diligent in how we invest in future content deals,” he added. “Obviously, we will not renew those that aren’t performing.”
“And the ones that are performing, obviously, we will look at those on a case-by-case basis in terms of relative value.”
Rogan a Spotify Success
Spotify definitely has the appetite for some high-priced collaborations. It rebuffed requests last year to cut relations with its contentious star, Joe Rogan, who reportedly paid $200 million in 2020 in exchange for giving the streamer exclusive listening rights.
However, Mr. Rogan’s show features numerous multi-hour episodes each week, with an estimated audience of 11 million people.
Meghan, on the other hand, only released 12 episodes of her Archetypes podcast last year.
The Sussexes and Spotify were “proud” of the material they created together, according to the joint statement announcing the divorce.
And a slew of awards demonstrated why.
Archetypes’ debut last year topped Spotify’s rankings in six countries, including the United States and the United Kingdom. Meghan’s show, in which she interviewed other celebrities like as Serena Williams, Mariah Carey, and Mindy Kaling, was also nominated for a People’s Choice Award.
However, crisis communications expert Mark Borkowski believes the show was not compelling enough when Spotify evaluated the figures.
“It’s always about the content…. Clearly, there hasn’t been a big enough audience for it,” he says. “No one will pay you if you don’t deliver your fee.”
According to Mr Borkowski, there is little doubt that the duke and duchess still have media value. However, it may no longer be what it once was.
Prince Harry and Meghan’s popularity in decline
According to a Newsweek poll conducted earlier this year, the couple’s popularity in the United States has decreased as a result of the marketing blitz around their Netflix documentary series and the publishing of Harry’s book, Spare. “The more Prince Harry and Meghan say, the less Americans like them,” read the headline in Newsweek.
Mr Borkowski said the duo will have to “think hard” about what they can provide in whatever they do next after they step down as working royals in 2020.
“It’s a thread that’s been pulled out of the brand,” he says of Spotify’s demise. “If they want to keep it from unraveling, they’ll have to think really hard.” The greatest question is whether they will learn from this loss or dismiss it as a blip.”
This Thursday, a representative for the duchess’s new Hollywood talent agency informed the Wall Street Journal, “Meghan is continuing to develop more content for the Archetypes audience on another platform.”
According to Max Willens, senior analyst at Insider Intelligence, Spotify is not the only tech behemoth that has spent lavishly in recent years to attract talent who has failed to deliver on the promise implied by the money they were paid.
Those high days came to an end last year, as economic mood deteriorated and market prices fell.
However, Spotify shares are up nearly 90% this year as investors embrace Mr Ek’s promises to remain focused on “efficiency.” Spotify continues to acquire users and has seen its podcast repertoire grow to more than five million.
Prince Harry and Meghan Markle “Fucking Grifters
This month, the corporation announced the “next phase” of its podcasting business, indicating that it will welcome lower-cost, third-party artists while increasing investment in “always on” programming.
“The platforms that have gotten into [podcasting] had to take some time to figure out what constituted a good investment,” adds Mr Willens. He describes Spotify’s choice to cut ways with the Duke and Duchess as a “understandable and natural part of that process.”
“Those were big, big deals designed to create buzz and grab headlines, and they succeeded.” The question is whether they make excellent long-term economic sense.”
Meanwhile, Bill Simmons, the Ringer creator and Spotify’s head of podcast innovation and marketing, recently called Prince Harry and Meghan Markle “fucking grifters” on his podcast. Simmons’ remarks come after the Duke and Duchess of Sussex announced on Thursday that their production company, Archewell, had terminated connections with the audio company. In 2020, the pair signed a $20 million agreement with Spotify.
“‘The Fucking Grifters,'” says one. “That’s the podcast we should’ve started with them,” Simmons said on his self-titled programme. “I need to get drunk one night and tell Harry about the Zoom I had with him to help him come up with a podcast idea.” It’s one of my favourite stories.”
Simmons’ Ringer was sold to the audio platform for $196 million in 2020, propelling Simmons to a leadership position at Spotify.
In the January 2022 broadcast of his podcast, the podcaster also chastised the pair, saying, “Shoot this guy to the sun… I’m sick of this guy. What brings he to the table? He just whines about shit and continues to give interviews. Who gives a damn? Who is interested in your life? You weren’t even the preferred son.”
“You live in fucking Montecito and you just sell documentaries and podcasts, and nobody cares what you have to say about anything unless you talk about the royal family and just complain about them,” Simmons continued.
