If you haven’t heard already, Joe Rogan has signed a deal with Spotify that is worth 100 million dollars! Wow…
Now, before we dive into what that means for the Joe Rogan Experience show and his audience, let’s talk about the big elephant in the room.
Is 100 million dollars a lot of money?
To start, let’s look at the U.S. Bureau of Labor Statistics and see what they have to say about last year’s, May 2019, annual average wage. The national annual average wage came out to $53,490.
If someone is earning the national annual average wage, they would have to work over 18 and a half years just to earn $1 million dollars. If they wanted to earn $10 million dollars, that person would have to work for 187 years.
But, if $10 million dollars isn’t enough and you want to earn $100 million dollars with an annual salary of $53,490 per year, you would have to work for 1,870 years. That is almost 2 millenniums that you would have to work!
I hope you have a backup plan because even though I don’t like to say things are impossible, that might be one of the few instances where, it’s NOT possible.
How to build to 100 million dollars?
Let’s not forget, Joe Rogan DID NOT wake up one day and say, “Give me 100 million dollars”, without having to work his tail off. Just going off of what he has done with the JRE show:
- over 1400+ episodes
- has 2+ billion views on YouTube
- Put in over 10 years into the show
- has built a YouTube following of 8.45 million subscribers
- interviewed some of the greatest minds in our current time
With those kind of numbers, he definitely had some leverage to go into the negotiation table and rightfully ask for 100 million dollars.
Now, I do want to point out that the 100 million dollar deal is for a multi-year contract. I’m not sure how long the multi-year agreement is, but even if it’s for 10 years, that is still $10 million per year. Not including any other sponsors or endorsement deals he may get for his show.
There’s always a catch!
As with most deals/opportunity/agreements, there’s a catch. The JRE show is going to be exclusive to Spotify, however, it won’t be right away. On September 1, the show will start on Spotify. The exclusive rights to Spotify will roll out at the end of 2020.
If you are not familiar with Spotify, they do have a free and paid version of their app. The free version consists of, you guessed it, ads… The paid version is ad-free. Spotify premium has an individual 9.99/mo plan, family 14.99/mo plan, and a student 4.99/mo plan.
What does this mean for YouTube?
According to Forbes, The Joe Rogan experience is the highest earning podcast with earnings over $30 million, the title of No. 1 podcast in the world, and claims of 190 million downloads per month.
If you are not familiar with what is going on with YouTube right now, people are starting to reconsider if staying on YouTube is the best thing for their show. The infamous takedown of Alex Jones and more recently the banned video from London Real, people are starting to reconsider where to store their content. Although, Spotify also participated in the removal of the same London Real episode.
In any case, permanently removing the #1 podcaster from their platform may not affect YouTube in the short-term as far as eyeballs visiting the site, but it may have a more long-term effect.
Creators now have a number to look at. If the #1 podcaster is valued at 100 million dollars, where do the other podcasters/content creators stand? And, are they getting paid what they are worth at YouTube? If they are not getting paid what they are worth, will they venture out and find a home that truly values their time and effort? Only time will tell.
Keep growing, keep investing.
p.s. If you are a content creator, I would definitely like to hear your thoughts about what is going on with the YouTube platform and if you think Joe Rogan was underpaid/overpaid for the switch.