Spotify has suffered an approximately $45 million loss following the termination of Meghan Markle and Prince Harry's contract last month, according to recent reports. The financial hit was due to "write-offs and contract termination" costs that arose while reassessing the company's podcast content.
Spotify CEO, Daniel Ek, revealed that the company has been exiting from deals and partnerships that have not been profitable, and conceded they had "overpaid" in some instances.
The streaming giant also made significant layoffs earlier in the year, with a reduction of about 6% of its 6,600 workforce in January, and further cuts later on. Sahar Elhabashi, Spotify’s head of podcast business, stated that the company made "the difficult but necessary decision" to realign its operations and eliminate approximately 200 positions, equating to 2% of Spotify's workforce.
The termination of Harry and Meghan's contract came after their podcast deal failed to generate the expected revenue, prompting Spotify to withdraw its support. Insiders allege the couple did not meet the necessary productivity benchmarks to warrant the full payout, as per the Wall Street Journal.
Despite these setbacks, the Duchess reportedly plans to continue producing more podcasts.
The financial implications of these developments have reportedly placed Meghan and Harry under significant financial strain, struggling to maintain their current lifestyle. Recent reports suggest the Duke has reached out to his brother, Prince William, to discuss the possibility of returning to the UK. This potential change of course has sparked criticism and claims from royal observers that such a move would be a "humiliation" for the couple.
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