Neil Younger versus Spotify (NYSE: SPOT) and Joe Rogan isn’t precisely what we anticipated from 2022, however right here we’re.
And, it’s value Spotify greater than $2 billion thus far…
…so, ought to traders be involved about Spotify?
He might have a coronary heart of gold, however Neil Younger received’t be rockin’ in Spotify’s free world any time quickly. Citing his dissatisfaction with Spotify’s unique broadcasting of the controversial ‘The Joe Rogan Expertise’ podcast and its alleged anti-vax rhetoric, Younger has formally pulled his sizeable catalog from the world’s largest streaming service.
What’s extra, different musicians, together with Joni Mitchell and Bruce Springsteen guitarist Nils Lofgren, have adopted go well with. And it’s not simply musicians, with standard podcaster Brene Brown saying that she would “not be releasing any podcasts till additional discover.”
So, the place does this depart Spotify, which has misplaced $2 billion in market worth because the story broke, and forked out $100 billion for unique rights to Rogan?
Spotify’s in the identical place as earlier than, actually. CEO Daniel Ek got here out final night time and introduced plans so as to add a content material advisory on any podcast episode that mentions COVID-19. And to be trustworthy, that’s in all probability that.
This story represents fairly the storm in a teacup for Spotify traders, who must be extra involved with the corporate’s upcoming earnings report on Wednesday. With streamers resembling Netflix and Disney teetering in the mean time over gradual subscriber development, may Spotify be subsequent to face Wall Road’s ire?
Artist disputes are Spotify’s bread and butter already, and I’ve little doubt it can resolve the Neil Younger dilemma, but it surely’s vital, as traders, that we hold a detailed eye on subscriber development this week, and the way the corporate plans to proceed constructing.