The recent announcement by Spotify regarding their substantial savings of £34 million after terminating the contract with Meghan Markle and Prince Harry has left Meghan feeling humiliated and choked with rage.
For Spotify, the decision to part ways with the Sussexes seems to have been a wise one, as it has saved them from spending large sums on what they consider to be unproductive Meghan Markle podcasts.
Last month, Spotify ended its lucrative contract with Meghan Markle and Prince Harry, resulting in significant write-offs and termination costs for the streaming service. Spotify's CEO, Daniel L, explained that the company had decided to step away from deals and relationships that didn't yield the expected results. Their heavy investment in podcasts had not paid off as anticipated, leading to a series of job cuts in the podcast business.
Spotify had initially invested over £800 million in building its podcast business, amassing more than 4 million titles. However, the return on this investment has not been as promising as hoped, and the company's gross margins suffered. One notable example of overspending was the £162 million deal for Zakarian Joe Rogan's podcast signed in January.
As part of its cost-cutting measures, Spotify reduced its workforce by 200 jobs in the podcast division, marking the second round of redundancies this year. The previous announcement saw around 600 jobs being axed, making up about 6% of the company's workforce.
Meghan and Harry's podcast series titled "Archewell Audio" launched in 2022 with 12 episodes featuring guests like Serena Williams and Paris Hilton. However, it failed to meet performance targets set by Spotify, resulting in the couple missing out on the full payment of approximately £16 million. This contributed to a wider £259 million fall in Spotify's revenue.
Following the decision to part ways, Don Ostrov, who led the negotiations for Meghan and Harry's deal with Spotify, left the company. Spotify replaced the joint statement with the Sussexes, referring to them as "grifters," a term used to describe those perceived as exploiting others for personal gain.
Reports suggest that Meghan and Harry are currently facing financial pressure and finding it challenging to maintain their lifestyle. While Meghan's Spotify podcast was recently snubbed, their Netflix deal reportedly remains intact. Harry is said to have reached out to Prince William to discuss the possibility of returning to the UK, a move that has sparked speculation and added to the couple's sense of humiliation.
The situation reflects the challenges faced by Spotify and the Sussexes in navigating the world of podcasting and their subsequent financial struggles.
