Barack and Michelle Obama set to exit Spotify podcast deal

The Obamas are said to be walking away from their Spotify deal, setting the stage for a bidding war among rival platforms for one of the world’s most influential couples.

Former US president Barack Obama and his wife, Michelle, were said to have grown frustrated by the terms of the 2019 Spotify contract. Picture:Jim Young / AFP

Barack and Michelle Obama are said to be walking away from their exclusive podcast deal with Spotify, setting the stage for a bidding war among rival platforms to land one of the sector’s star partnerships.

Higher Ground, the media company founded by the former US president and first lady in 2018, will not renew its contract with the Swedish streaming group when its terms expire in October, according to Bloomberg.

A split would clear the way for one of the world’s most influential couples to pursue a new multimillion-dollar partnership elsewhere. Audible, owned by Amazon, and iHeartMedia, the Texas-based broadcaster, are understood to be among a number of American media networks already in talks over a fresh deal potentially worth tens of millions of dollars.

The Obamas were said to have grown frustrated by the terms of the 2019 contract – reputed to be worth $US25 million ($34 million) – which meant their podcasts could be distributed only through Spotify. Any future arrangement would be expected to allow simultaneous release across multiple platforms, expanding the available audience but potentially diminishing its commercial allure.

There were also rumoured clashes over the extent of the couple’s personal contributions to the productions, with the Obamas pushing for a diverse range of voices while the streamer wanted to capitalise on their fame. The Michelle Obama Podcast was the platform’s most-played original production on its release in July 2020; Renegades: Born in the USA, with conversations between Barack Obama and Bruce Springsteen, the singer, was released last year.

Exclusive content is seen as key to attracting premium subscribers. Spotify has spent billions of dollars on star names, including $US200 million for Joe Rogan, the controversial host who this year sparked a boycott by artists led by Neil Young, the musician, for allegedly spreading misinformation about the pandemic.

The Duke and Duchess of Sussex said they were sticking with the platform despite the furore, having previously expressed “concerns” about some content. Archewell, the couple’s production company, is proceeding with plans to produce Archetypes, Meghan’s first podcast for Spotify.

Spotify will retain rights to host existing productions and a number of podcasts already produced by Higher Ground are slated to launch this year.

Spotify was launched in 2008 and is based in Stockholm. It was listed in New York in 2018 and has a market value of about $US23.5 billion. At midday its shares were down $US6.91, 5.6 per cent, at $US115.56.

Amazon and Apple, providers of rival platforms, are due to update Wall Street on their post-pandemic performance next week.

The Times