Spotify Technology SA (NYSE:SPOT), (CFVI) – Analysis: Are Joe Rogan’s days at Spotify numbered?

The controversy surrounding the content of the Spotify Technology AG (NYSE: SPOT) podcast “The Joe Rogan Experience” shows no signs of slowing down, with increased pressure on the company to address high-profile complaints of medical misinformation and racially insensitive comments about past episodes.

Spotify CEO Daniel Eck both distanced themselves from the Rogan episodes while standing alongside their star podcaster. In a memo to Spotify staff, Ek said Rogan’s comments “do not represent the values ​​of this company” – but he insisted that “vocal cancellation is a slippery slope” and that he had no plan to “silence” Rogan.

While Spotify removed several older episodes of “The Joe Rogan Experience” with problematic content – the exact number is unclear, with sources putting it between 70 and 113 – Ek added that he was committed to an “additional investment of $100 million for the licensing, development and marketing of music (artists and songwriters) and audio content from historically marginalized bands” in an effort to expand Spotify’s programming.

Whether or not it was an intentional pledge sum, $100 million is also the figure Rogan hit in his four-year deal in 2020 with Spotify to make his show exclusive to the platform.

See also: Benzinga Live: Joe Rogan vs. Spotify

Where is Rogan going? Benzinga polled thought leaders in the media and entertainment industry to determine what it would take for Spotify to see Rogan as a liability rather than an asset. For starters, there’s the question of whether Spotify can drop it quickly.

“I understand that Spotify has an exclusive license to ‘The Joe Rogan Experience’ podcast, which is produced by Joe Rogan and his team,” said Seth L. Bermanpartner and director of the Intellectual Property and Entertainment department of the New York law firm Abrams Fensterman LLP. “So it’s a question of whether or not there are provisions in the agreement that would allow Spotify to terminate the license agreement with ‘The Joe Rogan Experience’. Some contracts contain moral clauses or certain actions or behaviors that are defined that would allow a party to terminate the agreement.

Berman added that any termination of the contract would come at a cost to Spotify, either by reimbursing Rogan under the terms of the deal’s breach or by offering to buy out the contract.

“It seems like Spotify’s options are very limited as to what they can do,” he said.

Dr Bill Yousmanassociate professor and director of the Media Literacy and Digital Culture graduate program at Sacred Heart University in Fairfield, Connecticut, pointed out that Spotify was getting “a very significant return on investment from them”, and he believed that “those financial decisions are going to outweigh the kind of social upheaval that is happening around this”.

Although Yousman didn’t predict that Rogan would get the boot, he did speculate that there was behind-the-scenes damage control between the company and his star attraction.

“They’re in a crisis communications phase at this point and I think it’s more likely they’ll try ways to hold him back,” he said.

Veteran entertainment journalist Michael Musto observed that Spotify gives the impression that Rogan is walking slowly towards the exit door.

“It seems like they’ve been afraid so far to ban it altogether, so they’ve taken baby steps in that direction,” he said. “First they put disclaimers on his podcasts, then they added links to specific information. Then, apparently, they deleted 70 of his podcasts after it emerged he was using the N-word.

The racial aspect of the story surfaced over the weekend via social media posts by the singer-songwriter India.Ariewho requested the removal of his music from the platform.

Some prominent Rogan supporters, including Dwayne Johnson and Andrew Yang voiced their earlier enthusiastic support for the podcaster, with Johnson saying it was a “teaching moment for me” and Yang insisting that “I think we should have the ability to forgive people – that they’ve act like a podcaster or a mayor – if they’re wrong”.

“I think if celebrities and the public continue to pressure them, and if their next financial report is alarming, they will realize that it is not only a good thing to purge all of Rogan’s contributions, but that it will also be profitable,” he added. Mousto said.

The first celebrities to complain about Rogan’s show were legendary singer/songwriters Neil Young and Joni Mitchell at the end of January. But apart from India.Arie, no major contemporary music star is following their lead.

Jeff Peterseditor of the site dedicated to pop culture News and schedulesdidn’t think the star power of these celebrities defying Rogan’s position on Spotify could bring about a major change.

“If more people come to hear Rogan than everyone else, then Rogan wins,” he said. “There’s no demand for artists who peaked 50 years ago and whose music is everywhere.”

Pressure points: Currently, Spotify is noticing a negative impact from this issue – a February 1 poll by Forrester Research 19% of respondents said they had already canceled their service on the Rogan brouhaha and 18.5% would consider canceling if more artists left the platform. Still, 54% said they had no intention of canceling.

“Rogan has a massive audience and audience, far more than traditional networks, cable networks, radio syndicates, etc.,” said Ronald Magaspresident of Magas Media Consultants, LLC in Monroe, Connecticut. “Rogan is the center of attention because he’s a major influencer that many follow. The fact that he’s in the news makes him even more popular by default.

“If at some point Spotify decides that the money they are losing from people leaving the platform is somehow greater than what they are gaining from its audience, that will be the end of Rogan on Spotify. “, said Kenny Webster, Houston-based syndicated radio talk show host. “But so far it looks like the profits far outweigh the losses.”

Many of Rogan’s problematic shows have been on Spotify for weeks and months, but are only now sparking controversy. Some opinion leaders say this reflects Rogan’s degree of influence with the public, which goes beyond mainstream media.

Webster also pointed out that the depth and scope of Rogan’s programming is vastly different from most mainstream media, which creates unease within that industry. One of the controversies at the heart of Rogan’s COVID episodes was about his willingness to give the virologist a platform Dr. Robert Malonewhose anti-vaccination statements have earned him a ban on Twitter (NYSE: TWTR) and blacklisted by mainstream media.

“It’s embarrassing for the mainstream media and for it to nurture ideas and theories that challenge the government’s or so-called mainstream media’s narratives about health and the pandemic is just as bad for the people. the president’s chances of being re-elected only for the profit margin at companies like Pfizer and Moderna,” he said. “It’s no coincidence that Pfizer and Moderna spend a lot of money on advertising on networks like CNN or MSNBC.”

See also: Could Joe Rogan quit Spotify for Rumble?

Another exit? In the event that more controversy continues to seep around Rogan and Spotify and the podcaster and the platform decide to go their separate ways, what happens next?

On the morning of February 7, Chris Pavlovskyfounder and CEO of the video platform To scoldwhich goes public through a SPAC merger with CF Acquisition Corp VI (NASDAQ: CFVI), issued an invitation to join its operation and offered “$100 million for four years”, corresponding to the Spotify contract. Julien ChandraCEO of video-sharing site Odysseyat once followed cheekily polishing Pavlovksi’s largesse with an offer for Rogan totaling “$100 billion over four years.”

Again Pierre Pinholongtime internet talk show star and producer Radio RPPsuggested that Rogan might take a page from Anthony Cumiathe shock athlete who was fired in 2014 from SiriusXM (NASDAQ:SIRI) on racially insensitive content.

“He can start his own platform, which Anthony has,” Pinho said, referring to the subscription. Network made up of media. “Anthony has over a million subscribers and charges $13 a month. So guess what he’s up to? He makes around $13 million a year.

“Joe Rogan could take his followers and do the same thing,” added Pinho. “He doesn’t need Spotify, and Spotify, these other companies need to relax with the cancellation bullshit.”

Grant Sternlead producer at Miami Podcast Studiospredicted that a future without Rogan could possibly be a blessing in disguise.

“Spotify needs to start realizing that $100 million can buy a lot of really popular podcasts, not just a really big one,” he said.

Nonetheless, Stern acknowledged that the Rogan controversy is far from over and fading from sight.

“Has Joe Rogan crossed the line? Clearly,” Stern said. “Did Spotify do anything about it after immense public pressure? They start to. But is it enough? Who can say at this point?

Pictured: Joe Rogan with Marshall Mae Rogan; courtesy of Joe Rogan’s Facebook page.