Mark Borkowski

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By Natalie ShermanBusiness reporter, New York

When Spotify signed The DukeContent ='JJ Lin'> and Duchess of Sussex with an exclusive deal reportedly worth about $20m (£18m) in 2020, The RoyalContent ='JJ Lin'> couple were taking their First StepsContent ='JJ Lin'> into the commercial world and podcasts were positively booming.

How times have changed.

These DaysContent ='JJ Lin'> , Prince HarryContent ='JJ Lin'> and Meghan's brand has waned in The EyesContent ='JJ Lin'> of some and Spotify is reducing its reliance on the big celebrity signings and expensive original Content that have weighed on its Bottom LineContent ='JJ Lin'> .

Meghan's podcast became one of The MostContent ='JJ Lin'> high-profile casualties This WeekContent ='JJ Lin'> when Spotify and The DukeContent ='JJ Lin'> and duchess's Archewell Audio announced they would be parting ways in a mutual decision.

It came after Spotify's deal with Barack and Michell Obama's production company ended Last YearContent ='JJ Lin'> .

Spotify has Let Go hundreds of staff since that time, hitting the expansive podcasting division, a hotchpotch of podcasting companies it spent More ThanContent ='JJ Lin'> $400m acquiring just a few years ago.

On a conference call with financial analysts earlier this year, Spotify chief executive Daniel EkContent ='JJ Lin'> conceded The FirmContent ='JJ Lin'> had made some mistakes during the More ThanContent ='JJ Lin'> $1bn spending spree that followed its 2019 push to establish itself as a key player in the industry.

" You're right in calling out the overpaying and overinvesting, " He SaidContent ='JJ Lin'> .

" We're going to be very diligent in how we invest in future Content deals, " he added. " And the ones that aren't performing, obviously, we won't renew.

" And the ones that are performing, we will obviously look at those on a case-by-case basis on the relative value. "

Spotify ClearlyContent ='JJ Lin'> still has the stomach for some expensive partnerships. Last YearContent ='JJ Lin'> , it resisted calls to cut ties with its controversial star Joe RoganContent ='JJ Lin'> , who reportedly received $200m in 2020 for giving the streamer exclusive listening rights.

But Mr Rogan's show offers several multi-hour episodes each week, which reportedly command an average audience of 11 million people.

Meghan by contrast delivered just 12 episodes of her Archetypes podcast Last YearContent ='JJ Lin'> .

The joint statement announcing The SplitContent ='JJ Lin'> said the Sussexes and Spotify were " proud" of The MaterialContent ='JJ Lin'> they made together.

And a string of accolades showed why.

Archetypes' debut Last YearContent ='JJ Lin'> hit The TopContent ='JJ Lin'> of Spotify's charts in six markets, including the US and UK. The ShowContent ='JJ Lin'> , in which Meghan interviewed fellow celebrities such as Serena WilliamsContent ='JJ Lin'> , Mariah CareyContent ='JJ Lin'> and Mindy KalingContent ='JJ Lin'> , also won a People's Choice Award.

But crisis communications guru Mark BorkowskiContent ='JJ Lin'> says The ShowContent ='JJ Lin'> may not have been compelling enough when Spotify reviewed the numbers.

" It's always about the Content . . ClearlyContent ='JJ Lin'> there hasn't been a big enough audience for it, " he says. " If you can't deliver your fee, No One 's going to pay it. "

Mr Borkowski says there is little doubt that The DukeContent ='JJ Lin'> and duchess still have value as a media brand. But it may not be what it once was.

Polling for Newsweek suggested the couple's popularity in the US suffered following the publicity blitz surrounding their Netflix documentary series and the publication of Harry's memoir, Spare. " The more Prince HarryContent ='JJ Lin'> and Meghan MarkleContent ='JJ Lin'> say, the less Americans like them, " was Newsweek's headline.

Mr Borkowski says the pair, who stepped back as working royals in 2020, will have to " think hard" about what they can offer in whatever they do next.

" It's a thread that's been pulled out of the brand, " he says of the Spotify break-up. " If they want to stop it unravelling they've really got to think hard. The biggest question is are they going to learn from this setback or are they going to ignore it as just a blip. "

A spokesperson for the Hollywood talent agency now representing The DuchessContent ='JJ Lin'> told the Wall StreetContent ='JJ Lin'> Journal This WeekContent ='JJ Lin'> : " Meghan is continuing to develop more Content for the Archetypes audience on another platform. "

Max Willens, senior analyst at Insider Intelligence, says Spotify is not the only tech giant that spent heavily in recent years to sign talent who failed To LiveContent ='JJ Lin'> up to The PromiseContent ='JJ Lin'> implied by The MoneyContent ='JJ Lin'> they commanded.

Those heady days ended Last YearContent ='JJ Lin'> , as economic sentiment soured and share prices sank.

But shares in Spotify, which continues to add users and has seen its catalogue of podcasts jump to More ThanContent ='JJ Lin'> five million, are up nearly 90% this year, as investors welcome Mr Ek's promises to stay focused on " efficiency".

In announcing the " next phase" for its podcasting business this month, The CompanyContent ='JJ Lin'> signalled it would embrace lower-cost, Third PartyContent ='JJ Lin'> creators, while pushing investment towards " always on" programming.

" The platforms that have gotten into [podcasting] had to take some time to figure out what constituted a good investment, " Mr Willens says. He calls the decision by Spotify and The DukeContent ='JJ Lin'> and duchess to part ways an " understandable and natural part of that that process".

" Those were big, big deals designed to generate buzz and grab headlines and they accomplished that. Whether they made good long-term economic sense is a different question. "

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Source of news: bbc.com