Spotify's Billion-Dollar Gamble: Is Exclusive Content Worth It?

Jamie: 00:00:20

Hey there, and welcome to a deep dive that's really going to get those ears buzzing. We are diving deep into a topic that's making waves in the podcasting world right now. Exclusive deals.

You know those big money moves where platforms try to lock down your favorite shows and keep them all for themselves?

Jaayne: 00:00:36

Yeah, it's a big shift in the industry, for sure. Kind of reminds me of the whole cable tv to streaming revolution we saw a few years back.

Jamie: 00:00:43

Totally. Speaking of massive shifts, Spotify has been on a spending spree, dropping some serious coin to become, like, the go to podcast platform.

Jaayne: 00:00:54

Yeah, they're really trying to corner the market, aren't they?

Jamie: 00:00:56

It's like they're taking a page right out of Netflix's playbook.

Jaayne: 00:00:59

Absolutely. They want to be synonymous with podcasts, just like Netflix is with streaming. And they are not messing around.

We're talking over a billion dollars invested in this strategy.

Jamie: 00:01:09

A billion with a b. Yeah, it's a huge statement.

Jaayne: 00:01:13

Like back in: 2020

Jamie: 00:01:17

Yeah, the Joe Rogan experience, exclusively on their platform. 200 million for one show.

Jaayne: 00:01:22

And that was just the beginning. Gimlet Media, the Ringer, Parkhast, all brought under the Spotify umbrella.

Jamie: 00:01:30

Wow.

Jaayne: 00:01:31

They even acquired a couple of podcast analytics companies, too.

Jamie: 00:01:34

They are serious about this.

Jaayne: 00:01:36

Dead serious.

Jamie: 00:01:37

So what's the end game here? Are they just trying to hoard all the best podcasts and make everyone else pay to listen?

Jaayne: 00:01:43

Well, it's all about control, isn't it? Creating that gotta have it factor. They're betting big on targeted advertising and a subscription model.

Kind of like what Disney did with their exclusive content.

Jamie: 00:01:53

Hmm. Yeah, you got a point there. So they're hoping to cash in with subscriptions and targeted ads.

Jaayne: 00:01:58

That's the plan anyway.

Jamie: 00:01:59

But is it gonna work? That's the billion dollar question, isn't it?

Jaayne: 00:02:03

Right? Will it be enough? Big question. It's a gamble, for sure.

Jamie: 00:02:08

It's not exactly a sure thing, is it? I mean, it's not like Disney, where they've got these massive franchises like Star wars and Marvel.

With podcasts, it seems like it's more about the individual shows or hosts. Right, right. So what happens when that shine wears off? Are people really gonna subscribe to a whole platform just for one or two shows?

Jaayne: 00:02:27

That's what Spotify is banking on.

Jamie: 00:02:29

And on the flip side. Yeah. What about the creators? Are they all happy about being tied to one platform?

Jaayne: 00:02:35

Well, not all of them. Some big names have actually walked away from their Spotify exclusive.

Jamie: 00:02:39

Are they?

Jaayne: 00:02:40

Yeah, they said, see you later to all that Spotify cash.

Jamie: 00:02:42

Who's brave enough to walk away from all that money?

Jaayne: 00:02:44

Well, the Obamas for one.

Jamie: 00:02:46

Oh, way.

Jaayne: 00:02:47

Yeah. They ended their exclusive deal with Spotify.

Jamie: 00:02:49

Wow. So even the Obamas are saying no to exclusivity?

Jaayne: 00:02:52

It seems so. They said they were concerned about limited reach.

Jamie: 00:02:56

So for them, reaching a wider audience was more important than being tied to a single platform.

Jaayne: 00:03:00

It seems that way.

Jamie: 00:03:02

Huh. Interesting.

Jaayne: 00:03:03

And the Obamas arent the only ones. Last podcasts on the left. Have you heard of them?

Jamie: 00:03:07

Yeah, ive heard of them.

Jaayne: 00:03:08

Really popular comedy, horror show.

Jamie: 00:03:10

Yeah, theyre hilarious.

Jaayne: 00:03:11

They also ditched their Spotify exclusive deal. They said they wanted to go back to being on multiple platforms.

Jamie: 00:03:17

So it's about more than just the money for some creators, it's about getting their voices heard by as many people as possible. But let's be real for a second. Spotify dropped a billion dollars on this strategy.

They're not just gonna throw that money away without a fight, right?

Jaayne: 00:03:34

Of course not. They're hoping to make that money back and then some.

Jamie: 00:03:37

And how are they planning to do that?

Jaayne: 00:03:39

Well, they're banking on attracting more paying subscribers and selling more targeted advertising. Right.

Jamie: 00:03:45

Those make sense.

Jaayne: 00:03:46

But here's the thing. Some reports are saying that certain shows actually lost listeners after going exclusive.

Jamie: 00:03:52

Really?

Jaayne: 00:03:53

Yeah. Like a significant chunk of their audience just disappeared.

Jamie: 00:03:57

How is that even possible?

Jaayne: 00:03:58

Well, think about it. If people have to go out of their way to download a whole new app just to listen to one show, right. Some of them just aren't going to bother.

Jamie: 00:04:06

I guess that makes sense.

Jaayne: 00:04:07

And for some people, its not even just about the inconvenience. They might not want to support this whole exclusive content thing on principle.

Jamie: 00:04:15

Yeah, I can see that. So how many listeners are we talking about here? Like a small dip or a full on exodus?

Jaayne: 00:04:20

Some reports suggest a drop as steep as 75% in certain cases.

Jamie: 00:04:25

75%? Are you serious?

Jaayne: 00:04:26

Thats what theyre saying.

Jamie: 00:04:27

Thats insane.

If that many people bailed when their favorite shows went pie to paywallen, you gotta wonder if this whole exclusive thing is gonna backfire on Spotify.

Jaayne: 00:04:36

It's a real possibility.

Jamie: 00:04:38

And what does that mean for advertisers if fewer people are listening because they can't easily access the content?

Jaayne: 00:04:44

That's a big problem for advertisers because advertisers pay for reach. And if the reach isn't there, they're gonna take their money elsewhere.

Jamie: 00:04:51

So it's a domino effect. Yeah. Fewer listeners mean less attractive to advertisers.

Which means less money for Spotify and potentially less incentive for big names to stay exclusive.

Jaayne: 00:05:03

It's a chain reaction.

Jamie: 00:05:04

This is getting complicated.

Jaayne: 00:05:05

And to make things even more interesting, it's not just Spotify playing this game. Apple's been making some moves too.

Yeah, they've been partnering with big names like the BBC and slate to offer premium content through their subscription service.

Jamie: 00:05:20

So it's like a podcasting showdown.

Jaayne: 00:05:22

That's one way to put it.

Jamie: 00:05:23

Exclusivity versus open access. Who will reign supreme?

Jaayne: 00:05:27

Thats the million dollar question. And the answer might surprise you.

Jamie: 00:05:30

Oh, how so?

Jaayne: 00:05:31

Because its not just up to the platforms.

Jamie: 00:05:34

What do you mean?

Jaayne: 00:05:34

The listeners have a say in this too.

Jamie: 00:05:36

Oh, interesting.

Jaayne: 00:05:37

In fact you could say that the listeners hold the real power.

Jamie: 00:05:40

Us?

Jaayne: 00:05:40

Yes, you, the listener. Oh, so because ultimately its the listeners who decide which platforms and which shows succeed or fail.

Jamie: 00:05:47

I guess thats true.

Jaayne: 00:05:48

Think about it. Every time you hit play on a podcast, you're casting a vote. You're saying, I like this show, I like this platform.

Or you're saying, this isn't for me. And those votes add up. They determine what kind of content gets made and how that content gets delivered.

Jamie: 00:06:04

So it's like a democracy of the ears.

Jaayne: 00:06:06

Exactly.

Jamie: 00:06:06

That the people have the power.

Jaayne: 00:06:08

That's right.

Jamie: 00:06:08

So what can listeners do to make their voices heard?

Jaayne: 00:06:12

Well, the most important thing is to be mindful of your listening habits.

Jamie: 00:06:16

Okay.

Jaayne: 00:06:17

Ask yourself, am I listening to shows on multiple platforms?

Jamie: 00:06:22

Okay.

Jaayne: 00:06:22

Or am I sticking to just one or two?

Jamie: 00:06:24

Okay.

Jaayne: 00:06:25

Am I willing to pay for premium content or am I only interested in free stuff?

Jamie: 00:06:30

Okay. Those are good things to think about.

Jaayne: 00:06:32

And most importantly, don't be afraid to experiment.

Jamie: 00:06:35

What do you mean?

Jaayne: 00:06:36

Try out different podcast apps.

Jamie: 00:06:37

Okay.

Jaayne: 00:06:38

See what you like. See what you don't like.

Jamie: 00:06:40

Okay.

Jaayne: 00:06:41

And let your listening habits be your guide.

Jamie: 00:06:44

Because ultimately, it's the listeners who decide the fate of the podcasting world.

Jaayne: 00:06:48

That's right.

Jamie: 00:06:49

It's a powerful position to be in.

Jaayne: 00:06:51

It is.

Jamie: 00:06:51

And with great power comes great responsibility.

Jaayne: 00:06:54

Well said.

Jamie: 00:06:55

I think we've given our listeners a lot to think about today.

Jaayne: 00:06:57

I hope so.

Jamie: 00:06:58

It's a fascinating time to be a podcast fan.

Jaayne: 00:07:01

It really is.

Jamie: 00:07:02

And with all these changes happening, it's.

Jaayne: 00:07:04

Only going to get more interesting from here. So buckle up listeners, and get ready for the ride.

Jamie: 00:07:08

Because the future of podcasting is in your hands.

Jaayne: 00:07:11

Or maybe I should say your ears.

Jamie: 00:07:13

You know what's so interesting about all this? It's not just about platforms duking it out, you know, throwing money around.

It's about the creators, the voices we love, trying to figure out how to navigate this whole new world of podcasting.

Jaayne: 00:07:26

Yeah, it really is a new frontier, isn't it?

Jamie: 00:07:28

It really is. And for many podcasters, it seems like it boils down to one reach.

Jaayne: 00:07:34

Yeah, reach is huge.

Jamie: 00:07:35

They want their message, their stories, their jokes to land with as many listeners as possible.

Jaayne: 00:07:42

And who can blame them for that?

Jamie: 00:07:43

I know, right? And that brings us back to you, dear listener.

Because believe it or not, you actually have a huge say in how this whole exclusive content thing plays out.

Jaayne: 00:07:55

Yeah, your listening habits actually matter.

Jamie: 00:07:57

They really do.

Jaayne: 00:07:58

Think about it. Do you stick to one podcast app like it's the only one out there?

Jamie: 00:08:01

Yeah. Are you a creature of habit or.

Jaayne: 00:08:03

Are you an audio adventurer hopping between platforms to catch all your must listen shows?

Jamie: 00:08:08

I like that audio adventure.

Jaayne: 00:08:10

Gotta keep things interesting.

Jamie: 00:08:11

So true.

Jaayne: 00:08:12

And here's another big one. Would you actually open your wallet and pay a premium to unlock your favorite shows if they were stuck behind a paywall?

Jamie: 00:08:20

That's the million dollar question right there.

Jaayne: 00:08:22

These are the questions that are shaping the future of podcasting.

Jamie: 00:08:25

It's like we're all part of this giant experiment.

Jaayne: 00:08:28

That's a good way to put it.

Jamie: 00:08:29

Except the lab is our headphones, right? Every time we hit play or subscribe or even unsubscribe, were sending a message about what matters to us as listeners.

Jaayne: 00:08:38

So choose wisely. Indeed, the future of podcasting isnt just about which platform throws the most money around, its about what listeners actually choose to listen to.

Jamie: 00:08:49

So the power is in your hands, dear listener.

Jaayne: 00:08:52

Or maybe I should say your ears.

Jamie: 00:08:54

Thats a good one. The power of the earbud.

Jaayne: 00:08:56

Its a real thing.

Jamie: 00:08:57

Well said. Thanks for joining us for this deep dive into the wild world of podcast exclusives. It's been an earful. It has.

But hey, we've all learned a lot, haven't we?

Jaayne: 00:09:07

I know I have.

Jamie: 00:09:08

And who knows what the future holds for podcasting. But one thing's for sure, it's gonna be an interesting ride. Buckle up listener, we'll catch you in the next episode.