Why Spotify big bet on Meghan fall yakata

Wen Spotify bin sign di Duke and Duchess of Sussex wit one exclusive deal wey dem say worth about $20m (£15.6m) for 2020, di royal couple bin dey take dia first steps into di commercial world and podcasts just dey boom.

How times don change.

Dis days, Prince Harry and Meghan brand no too gel for di eyes of some and Spotify dey reduce im reliance on di big celebrity signings and expensive original content wey don weigh on im bottom line.

Meghan podcast become one of di most high-profile casualties dis week wen Spotify and di duke and duchess Archewell Audio announce say dem go part ways in a mutual decision.

Dis come fter Spotify deal with Barack and Michelle Obama production company end last year.

Spotify don sack hundres of staff since dat time, hitting di expansive podcasting division, a hotchpotch of podcasting companies e dey spend more dan $400m acquiring just a few years ago.

For one conference call with financial analysts earlier dis year, Spotify chief executive Daniel Ek agree say di firm bin make some mistakes during di more dan $1bn spending spree wey follow im 2019 push to establish itself as a key player for di industry.

"You dey right to call out di overpaying and overinvesting," e tok.

"We go de very diligent in how we invest for future content deals," e add. "And di ones wey no dey performe, obviously, we no go renew dem.

"And di ones wey dey perform, we go obviously look at dos on a case-by-case basis on for di relative value."

Spotify clearly still get di stomach for some expensive partnerships. Last year, e bin resist calls to cut ties with im controversial star Joe Rogan, wey reportedly dey receive $200m in 2020 for giving di streamer exclusive listening rights.

But Oga Rogan show offers several multi-hour episodes each week, wey dey reportedly command an average audience of 11 million pipo.

Meghan by contrast bin deliver just 12 episodes of her Archetypes podcast last year.

Di joint statement wey announce di split say di Sussexes and Spotify dey "proud" of di material dem make together.

And some accolades show why.

Archetypes first shoe last year hit di top of Spotify charts for six markets, wey include di US and UK. Di show, for which Meghan interview fellow celebrities such as Serena Williams, Mariah Carey and Mindy Kaling, also win a People's Choice Award.

But crisis communications guru Mark Borkowski says di show fit never dey compelling enough when Spotify review di numbers.

"Na always about di content.... clearly a big enough don dey for di audience for it," e tok. "If you no fit deliver your fee, no one go pay am."

Oga Borkowski say little doubt dey say do duke and duchess still get value as a media brand. But e fit no be wetin e be before.

Polling for Newsweek earlier dis year suggest say di couple popularity for di US bin suffer following di publicity blitz wey surround dia Netflix documentary series and di publication of Harry memoir, Spare. "Di more Prince Harry and Meghan say, di less Americans like dem," na Newsweek headline.

Oga Borkowski say di pair, wey step back as working royals for 2020, go have to "think hard" about wetin dem fit offer for whatever dem do next.

"Na one thread wey don dey pulled out of di brand," e tok of about Spotify break-up. "If dem wan stop am unravelling dem gatz think hard.

Di biggest question na whether dem go learn from dis setback or dem go just ignore am as just a blip."

One toktok pesin for di Hollywood talent agency wey represent duchess now tell di Wall Street Journal dis week:

"Meghan dey continue to develop more content for di Archetypes audience on another platform."

Max Willens, senior analyst at Insider Intelligence, say Spotify no be di only tech giant wey spend heavily for recent years to sign talent wey fail to live up to di promise implied by di money dem command.

Dis heady days end last year, as economic sentiment rise and share prices fall.

But shares for Spotify, wey continue to add users and don see im catalogue of podcasts jump to more dan five million, dey up nearly 90% dis year, as investors welcome Oga Ek promises to stay focus on "efficiency".

In announcing di "next phase" for im podcasting business dis month, di company signal say e embrace lower-cost, third party creators, while pushing investment towards "always on" programming.

"Di platforms wey don enta into [podcasting] gatz take some time to figure out wetin constituted a good investment," Oga Willens tok. E call di decision by Spotify and di duke and duchess to part ways an "understandable and natural part of dat process".

"Dis dey big, big deals wry de design to generate buzz and grab headlines and dem don achieve dat. Whether dem make good long-term economic sense na different question."