Barack and Michelle Obama’s time with Spotify Technology SA is coming to an end.
The former first family’s production company, Higher Ground, won’t be signing a new deal with the audio platform, according to people familiar with the negotiations. The company is instead talking to other distributors about a deal worth tens of millions of dollars, among the most-lucrative in the podcasting business.
Higher Ground is in the middle of negotiations with several potential partners, including Amazon.com Inc.’s Audible and iHeartMedia Inc., said the people, who asked not to be identified because the conversations are private. The company wants to pick a new home within the next few weeks. It has talked with multiple big networks, including Spotify, but the Swedish streaming giant declined to make an offer, according to three sources familiar with the discussions.
Spotify shares were little changed at 9:50 a.m. in New York trading. Amazon stock rose 1.1%, while iHeartMedia climbed 2.5%.
Higher Ground is seeking a deal that will allow it to produce several shows and release them on multiple platforms at the same time. This could explain iHeart’s interest given that it hasn’t historically relied on an exclusive strategy for its podcasts. This is one reason why some potential bidders, like Spotify, have bowed out -- a widely released show will end up on their service anyway. Companies like Spotify and Amazon have pursued exclusive rights to promote their own services.
The Obamas are each willing to appear in an eight-episode program, which for some bidders isn’t enough of a commitment to justify a deal comparable to those for shows like “SmartLess,” “Call Her Daddy” and “My Favorite Murder.” Those shows appear weekly, or with a frequency to close to that, while Higher Ground’s programs featuring the Obamas have been limited series.
Higher Ground signed a deal with the music streaming giant in 2019 as the Obamas planned their post-presidency media business. The company has produced a few podcasts since then, starting with “The Michelle Obama Podcast,” which features the former first lady chatting with friends and family on the subject of relationships. Spotify said that show was one of its five most popular podcasts in 2020.