“We overpaid”: Spotify Loses $45,000,000 After Its Prince Harry, Meghan Markle Decision
The renowned music giant, Spotify, recently faced a substantial financial blow of around $45 million due to the termination of Meghan Markle and Prince Harry’s contract last month. This decision was driven by the need to streamline their podcast content portfolio, leading to significant expenses in the form of write-offs and contract termination costs. Spotify underwent a restructuring process earlier this year, resulting in a reduction of about 6% of its workforce. Additionally, further adjustments were made, affecting around 2% of their employees, as mentioned in a blog post by Sahar Elhabashi, Spotify’s head of podcast business. This realignment was described as a challenging but necessary step to enhance the company’s strategic direction and streamline its global podcast operations.
Why was Meghan Markle’s Spotify Podcast Rejected?
Spotify’s decision not to renew the podcast of Prince Harry and Meghan Markle came as a surprise to many. The couple’s foray into the world of podcasting generated significant buzz and excitement when they signed an exclusive deal with Spotify to produce original content. While the exact reasons for not meeting the benchmarks remain undisclosed, speculation arose regarding potential factors. Despite their celebrity status and immense popularity, it seems that the podcast’s performance might not have lived up to the high expectations set by the streaming platform.
Spotify had intentions to launch a second season following the conclusion of the first season. Archewell Audio had been expected to provide more content to Spotify. Only one series has been released nearly three years after signing the contract. Spotify also stated that the royal couple did not reach the productivity criterion required to get the full deal’s headline reward. However, Netflix is unlikely to renew its contract with the Duke of Sussex, which was reportedly worth $150 million and for which they have only been paid half so far.
Despite this setback, it is evident that Meghan Markle’s enthusiasm for podcasting remains undiminished. Her determination to create more podcasts signals that she is not letting this stumble hinder her creative ambitions. As she moves forward, it will be intriguing to witness how she leverages her unique perspective and storytelling abilities to connect with listeners in new and engaging ways.
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What Was Prince Harry, and Meghan Markle’s Podcast All About?
The inaugural podcast series developed in association with Archewell Audio, the audio-centric production company established by Prince Harry and Meghan Markle, was Archetypes. This podcast marked the commencement of their multi-year affiliation with Spotify. Launched in August of the preceding year, Archetypes aimed to delve into the societal stereotypes that impede women’s progress. Season 1 comprised 12 episodes and featured renowned guests such as Serena Williams, Mariah Carey, Mindy Kaling, and other prominent figures. Meghan Markle said,
“This is how we talk about women: the words that raise our girls, and how the media reflects women back to us. But where do these stereotypes come from? And how do they keep showing up and defining our lives?”
Before parting ways with Spotify, Prince Harry, and Meghan Markle had previously launched a Holiday Special on the platform. This special episode featured notable guests such as Stacey Abrams, Jose Andres, James Corden, Elton John, Naomi Osaka, and Tyler Perry. However, according to The Report, the main reason for their separation from Spotify is attributed to the relatively limited production output compared to other exclusive deals on the streaming platform.
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Source: The Hollywood Reporter
