Spotify (SPOT) announced on Tuesday that it had signed a weekly podcast deal with comedian Trevor Noah, days after the company announced it was parting ways with Prince Harry and Meghan Markle.
The untitled podcast, due out later this year, will feature “in-depth and light-hearted conversations between Trevor and some of the most influential and interesting people on the planet,” according to a press release.
The news comes after Spotify announced late last week that it would not be renewing its podcast deal with production company Archewell Audio, founded by Prince Harry and Meghan Markle, less than a year after the debut of Markle’s first podcast, Archetypes.
“Spotify and Archewell Audio have mutually agreed to part ways and are proud of the series we made together,” Spotify and Archewell Audio said in a joint statement on Thursday. No reason was given for the split.
The audio giant has streamlined its podcast division after spending $1 billion to break into the podcast market over the past four years, with eye-popping top deals and studio acquisitions valued at over $400 million.
Spotify announced that it has signed a weekly podcast deal with Noah, set to launch later this year. (Photo by Jordan Strauss/Invision/AP, File)
Those expenses weighed heavily on gross margins and weighed heavily on profitability. As a result, investors punished the company, causing the stock to plummet a whopping 70% in 2022.
The partnership with Noah complements Spotify’s other high-profile deals from YouTubers like Alex Cooper, Emma Chamberlain and Dax Shepard.
“It’s really exciting to embark on a fun new adventure with Spotify, where we’ll have interesting and meaningful conversations with some of the most fascinating people on earth,” Noah said in a statement.
The company added, “Collaborating with Trevor Noah, one of the most brilliant and distinctive voices on the planet, will result in compelling storytelling that will delight our more than 100 million podcast listeners around the world.”
Spotify stock lost about 2% in early afternoon trade following the announcement.
The story goes on
A new subscription tier
Spotify, which previously told Yahoo Finance that starting in 2023 it will seek to improve its profitability rates based on gross margin and operating income, classified 2022 as a peak investment year.
So far, the company appears to be delivering on that promise by shifting from a growth-at-all-costs strategy and realigning its podcast division.
Earlier this month, the audio giant announced it was cutting 200 jobs, or 2% of its workforce, at its podcast division, citing “a strategic realignment.” Part of this realignment included the merger of previously acquired Parcast and Gimlet studios to co-produce original content with the broader Spotify Studios.
The company cut 6% of its workforce, around 600 employees, earlier this year. A business reorganization was announced at the time, resulting in the departure of Chief Content Officer and Advertising Business Officer Dawn Ostroff, who led the majority of Spotify’s spectacular podcast deals.
As Spotify looks to continue improving its margins, Bloomberg reports that the audio giant plans to introduce a pricier premium subscription tier that offers enhanced audio features and more access to audiobooks. This comes as investors have been pushing the company to increase prices in its various plans.
The reported tier, dubbed “Supremium” internally, will be rolled out internationally before debuting in U.S. markets in October, Bloomberg said.
The company did not immediately respond to Yahoo Finance’s request for comment.
Alexandra Canal is a Senior Reporter at Yahoo Finance. Follow her on Twitter @allie_canalLinkedIn and email her at [email protected]
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