The journey of podcaster Alex Cooper highlights the rapid evolution of the podcast industry in the United States. After earning her degree in film and television from Boston University, Cooper initially pursued a career in sales. In 2017, she and her roommate Sofia Franklyn launched the podcast Call Her Daddy, discussing relationships and sexuality.
The podcast quickly gained attention, and within a year, media giant Barstool Sports acquired it, offering both hosts a base salary of $75,000 plus bonuses tied to audience numbers. By 2021, Spotify acquired the podcast for $60 million over three years. Now, Cooper is reportedly close to signing a $100 million deal with SiriusXM, according to the Wall Street Journal.
Other notable figures in the podcasting world with lucrative deals include comedian and host Trevor Noah, who is renewing his show What Now? for a second season on Spotify, and stand-up comedian and MMA commentator Joe Rogan, who inked a $250 million deal with Spotify for The Joe Rogan Experience.
What began as an accessible platform for discussing a wide range of topics has transformed into a lucrative industry for top podcasters, who now enjoy tours, merchandise sales, and multi-year deals worth hundreds of millions of dollars. Despite nearly 450,000 active podcasts in the U.S., the top 25 capture almost half of the weekly listeners.
Podcast distributors like Spotify and Amazon are capitalizing on this trend. Some offer subscriptions to popular shows, providing ad-free listening, early access or exclusive content. They are also creating video versions of podcasts and selling more ads to major brands.
However, there have been setbacks. Spotify, for example, signed high-profile deals that did not always succeed, such as the $20 million contract with Prince Harry and Meghan Markle, which only produced one program. To avoid such losses, distributors are now including clauses in contracts to protect their investments. In Cooper's anticipated deal with SiriusXM, the podcast must meet minimum audience targets. Similarly, Noah's deal with Spotify allows the platform to recoup its initial investment and share additional ad revenue.
Nearly 100 million Americans aged 12 and older listen to podcasts weekly. Podcast advertising revenue is expected to grow by 12% to over $2 billion this year and nearly $2.6 billion by 2026.
Podcast creators often record both audio and video of their episodes, posting them on YouTube and sharing ad revenue. Spotify initiated this strategy four years ago, achieving success with Rogan and Cooper. Now, around 250,000 podcast creators upload video content through Spotify.
Amazon's podcast unit, Wondery, is betting that leading podcasts can become successful across other media like movies, TV, and books. Wondery plans to launch video episodes of Armchair Expert after signing an $80 million deal with comedian Dax Shepard. NFL stars and New Heights podcast hosts Jason and Travis Kelce are also seeking a deal in the $100 million range and have held talks with Wondery.
Smaller and less established podcasters can still make deals with distributors, but their contracts are much lower, making merchandise sales and tour performances critical. Like many podcasters in Israel, numerous U.S. podcasters treat their shows as side gigs while maintaining other jobs for income.