After Spotify cut ties with the royal couple, experts warn the Sussexes could lose up to $10 million in deals; yet, the Duchess could go on to become as successful as Gwyneth Paltrow or the Kardashians.
According to analysts speaking to MailOnline today, Spotify’s decision to cut their losses and cancel their partnership with Meghan and Harry might cost the pair $10 million, which is not encouraging for their dwindling chances of building a $1 billion brand.
It has been reported that the Sussexes and the streaming giant mutually decided not to extend Meghan Markle’s podcast Archetypes for a second season.
According to PR expert Mark Borkowski, it is very bad news for Meghan and Harry’s business and an indication that “their star is really falling,” according to MailOnline. He predicted that they might lose up to $10 million due to the failure.
‘They didn’t get the product quality right, and the gooey front of their new reality faded,’ he claimed. Their much-hyped balloon is losing air, and these little things start to chip away at the juggernaut of publicity they created when they split from the Royal Family.
“Their star is really falling if no one is interested in anything they have to say about mental health or the Royal Family.” It is not a good day for Meghan and Harry’s long-term reputation, he continued.
The Sussexes’ only remaining significant contract is with Netflix, which is estimated to be worth $100 million (£80 million).
According to Mr. Borkowski, they could lose up to 40% of the $25 million transaction, or around $10 million, if it expired.
With much hoopla, Archetypes debuted the previous year, starring stars and famous friends including tennis icon Serena Williams, pop diva Mariah Carey, and South African comedian Trevor Noah.
The Times compared the listening experience to being “locked in the relaxation room of a wellness spa with an unusually self-involved yoga instructor,” but assessments from critics were generally negative. According to reports, Spotify became dissatisfied with the production schedule of 12 episodes in two years.
There were also rumoured to be conflicts over how far her podcast and individual episodes fell on the charts. Even worse, it was alleged that Spotify improperly exploited its own official podcast chart to maintain Meghan Markle’s top spot even though she was trailing other celebrities like Joe Rogan in terms of daily listens. And earlier this year, as the streaming behemoth posted a loss of £187 million ($230 million), Spotify’s CEO said he got “a little carried away” and “over-invested” in pricey podcasts.
Nick Ede, a brand and cultural specialist, told MailOnline today that Spotify will have cut the cord and that this is a hint that the couple was riding a post-Megxit wave that is collapsing. Amid speculation that Netflix is also dissatisfied, he believes that more advertisers will drop them.
It appears that Meghan’s brand isn’t doing so well at the box office, and he predicted that many more companies would follow suit.
As her alternatives become more constrained, Mr. Ede stated that Meghan’s decision to discontinue her blog, The Tig, is almost probable. He thinks that because the Spotify contract fell through, the couple will have lost “many millions.”
A few weeks ago, Meghan had dinner with Gwyneth Paltrow and is likely to have interrogated her about how she built Goop, which is worth $250 million.
I believe that this is a really bad situation for Meghan and her brand to be in, according to Mr. Ede. She is likely to lose millions of dollars from these partnerships as a result of this information and the fact that Netflix is dissatisfied with the work produced by the Archewell team.
It also demonstrates that the large businesses’ post-Megxit halo effect has worn off and that they no longer have as much faith in Meghan and Harry. Brands must generate revenue. They invest in talent because of the economy rather than sentiment. Like Kourtney Kardashian with Poosh or Gwyneth Paltrow with Goop, I believe Meghan will create her own community and brand. As a result, I believe The Tig will have an audio division where she may create and perform archetypes, and it will be accessible on all digital channels in addition to Spotify.
The partnership with Spotify was seen as a crucial component of the couple’s post-Megxit strategy to distance themselves financially from the Royal Family.
Mark Borkowski stated in 2020 that if given the right advice, they would be able to become a billion-dollar brand to compete with their friend Oprah Winfrey, but he now acknowledges that this is improbable as a result of a string of missteps.