It’s the final week of the cruelest month and certain to be an eventful one for the audio world. Spotify posted its first quarter earnings this morning, reporting that the service in April lastly reached over half a billion (or 515 million) month-to-month customers. However first quarter income fell in need of expectations — despite the fact that the platform’s podcast advert income noticed a big (20 p.c) enhance from this time final 12 months. Nonetheless, the period of massive spending by Spotify on podcasts is probably going achieved, CEO Daniel Ek defined in the course of the name. I’ll dive into extra element under.
We are able to anticipate much more monetary information from the podcast trade on Thursday, with each SiriusXM and Cumulus Media scheduled to carry earnings calls.
Scorching Pod may also completely report at this time that SiriusXM and Oprah’s podcast community have signed a two-year renewal deal, which I’ll cowl extra under. Additionally on this subject, Tom Brady threatened to sue two comedy podcasters over an AI-generated comedy particular, and The Webby Awards crowns its podcast winners.
SiriusXM and Oprah Winfrey Community signal a two-year renewal settlement
Oprah’s Tremendous Soul is staying on SiriusXM. In response to a press launch seen prematurely by Scorching Pod, SiriusXM and OWN (the Oprah Winfrey Community) are planning to announce a two-year renewal deal that features unique rights to distribute OWN’s slate of podcasts by way of the SiriusXM podcast community. The deal additionally contains further sources to develop new OWN content material for SiriusXM — however the firm didn’t specify whether or not this may contain Winfrey herself.
“We’re honored that OWN continues to belief in SiriusXM’s skill to assist them attain new audiences, and we stay up for the event of recent content material by OWN,” SiriusXM’s vice chairman of content material partnerships and podcast technique, Daniel Osit, mentioned in an announcement.
SiriusXM may also maintain unique world audio and video advert gross sales rights to OWN’s podcasts, persevering with the corporate’s podcast technique of specializing in advertisements and attain slightly than exclusivity to a platform.
The renewal is nice information for SiriusXM after Bloomberg reported final 12 months that OWN was on the lookout for a possible new house for its podcast store. SiriusXM’s earlier cope with OWN (which it obtained after it acquired Stitcher) expired on the finish of final 12 months. A worth for the brand new settlement wasn’t disclosed.
Spotify’s Daniel Ek says firm might be “very diligent” about future content material offers
Daniel Ek made it fairly clear that the period of massive spending on podcasts is over. “You’re proper in calling out the overpaying and over-investing, and I can begin off by saying that we’re not going to try this,” Ek mentioned in response to an analyst’s query about podcast investments on an earnings name this morning.
Spotify’s $1 billion spend landed the platform unique offers with the likes of Joe Rogan and Michelle Obama and propelled its platform into a number one place within the podcast world — however at a really steep value. The platform has vowed to do some belt-tightening and function extra effectively this 12 months.
“Those that aren’t performing, we’ll clearly have a look at them on a case by case foundation.”
“We’re going to be very diligent in how we spend money on future content material offers, and those which might be performing, we’ll renew, and those that aren’t performing, we’ll clearly have a look at them on a case-by-case foundation on the relative worth. We now have very refined instruments for measuring impression on the platform.”
Ek’s caveat right here is especially related to Joe Rogan — the controversial host who’s Spotify’s perpetual primary (apart from proper now, funnily sufficient). The previous Worry Issue’s host cope with the corporate is predicted to run out across the finish of 2023. “Impression” is a technique Ek might go about justifying the thousands and thousands of {dollars} that Spotify must spend on a renewal.
Ek additionally teed up the concept that, now that Spotify is dominant within the podcasting world, an costly expertise deal won’t truly be so dear whenever you have a look at it on a per-user foundation. “As a result of we’re now the biggest podcasting platform, that implies that now we have a possibility to amortize throughout a bigger base,” he mentioned. “So, relative to somebody that’s smaller, we ought to be in a greater place ought to we wish to renew a deal.”
The platform this morning reported a internet lack of €225 million (round $248 million) for this primary quarter however surpassed expectations for person progress (it’s presently at 515 million MAUs) and premium subscribers, which is presently at 210 million. Quarterly income did develop (by 14 p.c 12 months over 12 months to roughly €3.0 billion), however that’s nonetheless under Spotify’s goal of €3.1 billion.
Podcast advert income grew by 20 p.c 12 months over 12 months, pushed largely by Spotify Originals and exclusives. The podcast enterprise isn’t worthwhile but, although, and the corporate declined to present any up to date projections on when that’ll change.
No enhance in subscription costs was introduced in the course of the name — however Ek ensured buyers at this time {that a} worth hike is coming in 2023. Ek additionally mentioned Spotify’s flashy new design — which can enormously impression the appear and feel of audiobooks and podcasts — will take “a number of quarters” to roll out on the platform. Ek additionally hinted at future AI and machine studying upgrades to return sooner or later, leading to “compounding enhancements” for a few years.
Tom Brady threatens to sue comedy podcasters over AI-generated particular
Comedians Will Sasso and Chad Kultgen — the duo behind the Dudesy podcast — are in scorching water over an animated phase that featured Tampa Bay Buccaneers quarterback Tom Brady doing a standup routine, full with an AI-generated voice clone. Included in a one-hour comedy particular posted by the comedians final week, the Brady cartoon caught the eye of thousands and thousands of viewers on YouTube — together with Brady himself. The soccer star’s authorized workforce promptly despatched a cease-and-desist letter to Dudesy, and the podcasters have since taken the particular down.
“Mr. Brady is not going to permit Dudesy to take advantage of his publicity rights for Mr. Sasso’s and Mr. Kultgen’s private monetary acquire — particularly when Mr. Sasso and Mr. Kultgen have introduced Mr. Brady’s likeness in reference to extremely offensive and defamatory materials,” said Brady’s attorneys within the letter, which Dudesy learn out loud in a subsequent episode.
To nobody’s shock, celebrities aren’t a fan of AI-generated impersonations of them going viral on the web.
To nobody’s shock, celebrities aren’t a fan of AI-generated impersonations of them going viral on the web. Joe Rogan final week tweeted, “That is going to get very slippery, children,” in response to an AI-generated podcast that featured his voice. No kidding. The intersection of AI and legislation isn’t simply nascent — it places user-generated content material platforms like YouTube in tough authorized territory. Whereas satire and parody are protected types of speech (let’s pour one out for South Park’s long-suffering authorized workforce), it’s unlikely most creators can afford the authorized bills of defending their AI creations in court docket.
Audible wins Webby’s podcast firm of the 12 months
The winners of the 2023 Webby Awards — which incorporates podcast classes — have been introduced this morning. You possibly can view the total listing of winners right here. Audible wracked up essentially the most wins and nods throughout all of the podcast classes — with a powerful 4 wins (for The Huge Lie, The Sandman: Act III, and Discovering Tamika — in addition to a Folks’s Selection award for John Legend’s podcast Residing Legend. Lastly, Webby’s podcast of the 12 months went to SmartLess — the favored comedy podcast by Jason Bateman, Sean Hayes, and Will Arnett.
And that’s all I obtained for you at this time. I’ll be again for the Insider version of Scorching Pod on Thursday.
