Joe Rogan’s deal to carry his show exclusively on Spotify reached a record-breaking sum in large part because of his success on YouTube, according to people familiar with the matter.
Before 2020, Rogan had built up a significant business by posting full podcast episodes on YouTube. As Spotify negotiated its deal for his show, Rogan’s team drove up the price because Spotify would have to compensate for the YouTube revenue and audience he was forgoing, these people said. Spotify ended up paying about $200 million, The New York Times reported.
The Rogan deal reflects a new reality in the podcasting world: YouTube has unintentionally become a podcasting giant. A pair of industry surveys earlier this year found the video-streaming service was the most popular podcasting platform, and people inside Spotify said the company viewed YouTube as its biggest competitor. Spotify did not immediately return Insider’s request for comment on the deal. 
Because Rogan would also be giving up posting full video episodes on YouTube in the deal, Spotify had to rush out its plans to release a video player to host videos of Rogan’s show, according to two people familiar with the matter. 
YouTube remains a significant part of Rogan’s business even though his full show is exclusive to Spotify. He still posts snippets of his show on YouTube, and those videos, including his recent interview with Meta CEO Mark Zuckerberg, have racked up millions of views on their own. Spotify views these videos as marketing vehicles that can drive people to listen to the show on its platform, people familiar with the matter said. 
Podcasters are increasingly posting videos of their shows on YouTube to tap into the site’s vast audience and make money off ads. As YouTube has grown into the largest podcasting platform, the podcasting community and the media industry at large are tracking how much YouTube will invest in the sector. Recently, it rolled out a landing page for podcasts, and a report from Podnews said company was considering adding features like more advanced metrics and the ability to upload episodes through RSS feeds. 
A YouTube spokesperson said the company was evaluating its podcasting strategy at the moment and that its podcasting page was for the US only.
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