Spotify gets £34m for podcasting after Harry and Meghan split

Duchess of Sussex's Archetypes podcast ends after just one season

Spotify lost €39m on podcasts after pulling out of deals, including a high-profile collaboration with the Duke and Duchess of Sussex.

The music streaming service said it had written off expenses in the second quarter of this year as a result. expenses for a «write-off and contract termination» «due to the rationalization of our podcast content portfolio.»

Spotify recently drastically cut costs in its podcasting division, spending millions to expand the market.

Last month, Spotify and Archewell Audio, Prince Harry and Meghan Markle's podcast company, agreed to mutually terminate a $20m (£16m) deal they signed in 2020.

Reportedly, that the Duke and Duchess failed to meet the performance targets to receive the full payout. Commercial arrangements are not disclosed.

Archetypes, the only podcast the Sussexes did for Spotify, was canceled after one season. The partnership was later terminated and Bill Simmons, Spotify's chief executive and podcast host, called the pair «fucking scammers.»

In a conversation with investors, Daniel Ek, Spotify's chief executive, said the company was «getting out of some deals and relationships that didn't work out» and acknowledged that in some cases «we overpaid what we should have done.» .jpg» />Spotify has made a number of major investments in podcasting to bring celebrities such as Joe Rogan to the platform. Credit: SYFY/Getty Images Contributor

The podcast write-offs have increased the music streaming service's €302 million loss, while the company has also incurred the cost of reducing office space as jobs are being cut.

Spotify has invested heavily in podcasts as part of its expansion beyond music, signing the Sussexes as well as stars such as American presenter Joe Rogan.

However, the expansion did not lead to the expected increase in advertising. revenue and Spotify laid off 200 employees in its podcast division last month and also canceled six true crime podcasts.

He struggled to profit from this operation.

Spotify registered 10 million new paying users in the second quarter of the year, reaching 220 million subscribers. Including ad-supported users, 550 million people use the app every month.

Revenue increased by 11 percent to 3.2 billion euros. Its losses increased from 125 million euros to 302 million euros. Spotify reported that its adjusted operating loss, excluding one-off losses, fell to €112m.

The streaming service raised the price of its core £1/month subscription to £10.99 earlier this week. week. this is the first such gain in its history.

He is being pressured by record labels to increase industry payouts.

Spotify's shares are down 6% in US premarket trading.