Jay Shetty, a popular self-help podcaster, has signed a deal to bring the video version of his show exclusively to Spotify Technology SA and Netflix Inc., in a major coup for both companies’ efforts to unseat YouTube as the top platform for video podcasts.
Shetty’s deal is worth as much as $100 million over multiple years, according to people familiar with the arrangement. That puts him in a rare stratosphere of hosts that includes Joe Rogan and Alex Cooper. Netflix and Spotify declined to comment on the size of the deal, although they confirmed the agreement. Shetty’s show, called On Purpose, will move to those services on July 13.
As part of the arrangement, Spotify will sell ads on the podcast. Older episodes and clips promoting new ones will still appear on YouTube and other platforms. Shetty previously partnered with iHeartMedia Inc. for ad sales and didn’t distribute his video episodes to Spotify.
Shetty, a London-born author, started his podcast seven years ago. Past guests have included Oprah Winfrey, Michelle Obama and Tom Hanks.
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“This is a historic moment, not just for On Purpose but for podcasting itself,’’ he said in a statement. “We’re entering a new era where interviews can impact culture as powerfully as movies, music, and television on the global stage.” This is the first time Netflix and Spotify have teamed up to secure a podcaster. The two companies have had an ongoing relationship, however. The Swedish music streamer has put many of its podcasts on Netflix, including Bill Simmons’ program, and Netflix co-Chief Executive Officer Ted Sarandos serves on Spotify’s board.
In January, Netflix debuted podcasts on its service via arrangements with iHeart and Spotify. It has also launched its own programs, like The Pete Davidson Show, that are exclusive to the streamer. In February, Shetty’s production company announced that it also has two projects in the works with Netflix – one scripted series and one unscripted.
Many online media companies are trying to gain a foothold in podcasts, which could help them retain subscribers or boost consumption during daytime hours. Tubi, an ad-supported streaming service owned by Fox Corp., has signed deals with YouTubers and podcasters to bring their programs to the service. Walt Disney Co.’s Hulu has also licensed podcasts to complement its catalog.