Meghan Markle and Prince Harry may face a setback in their 18 million pound contract with Spotify, as doubts arise regarding the popularity of their podcast.
The Duke and Duchess of Sussex inked the multimillion-pound deal with the streaming giant in December 2020, but have so far released only one 35-minute episode of their podcast.
Media lawyer Ian Penman, specializing in music streaming contracts, suggested that the podcast might not have garnered the expected traction.
Penman hinted at the possibility that Spotify did not exercise the option for a second episode due to lower-than-anticipated listener engagement.
He highlighted that the upfront payment in such deals is typically a fraction of the total amount, with the platform retaining the right to withdraw if the content fails to meet expectations.
This structure ensures that Spotify minimizes financial risks while maintaining control over future productions.
Although the Sussexes might not have received the full 18 million pounds upfront, Penman emphasized that the terms likely favor Spotify in potential follow-up projects.
He explained that the couple’s earnings would be contingent on the successful execution of subsequent podcast episodes, with Spotify having the final say on production decisions.
This arrangement safeguards the streaming service from significant financial losses in case of underperformance.
While the immediate financial impact on Spotify seems minimal, Penman raised concerns about the individual responsible for greenlighting the deal.
He likened the situation to a record label signing a band that fails to deliver, suggesting potential repercussions for those involved in the contract negotiations.
The lawyer speculated that if the initial advance payment was substantial and failed to generate interest, repercussions within Spotify could ensue.
Looking ahead, Penman outlined Spotify’s likely evaluation process, focusing on user engagement and advertising revenue generated by the podcast.
The platform’s analytical tools would scrutinize the impact of the Sussexes’ content on audience growth and commercial opportunities, informing decisions on future episodes.
Despite the high-profile nature of the deal, Penman cast doubt on the likelihood of a significant financial outlay from Spotify to Harry and Meghan.
In a statement announcing their podcast venture, the royal couple emphasized the importance of storytelling and connection in a challenging world.
Since stepping back from their royal duties, Meghan and Harry have ventured into various lucrative partnerships and ventures, expanding their brand beyond traditional royal roles.
From banking and tech collaborations to multi-million dollar deals with major entertainment platforms, the Sussexes have diversified their portfolio, establishing themselves as prominent figures in the media landscape.
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