After taking 85 days off, David Dobrik is back. The YouTuber returned to the platform earlier this week without a mention of the previous controversies surrounding himself and the Vlog Squad. Did you watch? Today Max is exploring the power of brand diversification. Enjoy ✌🏻✌🏽.

In Today’s Issue 💬

→ Call Her Daddy signs with Spotify 

→ Why Netflix launched a merch shop

→ A first look at Spotify’s Clubhouse competitor

Call Her Daddy Cashes In

The advice podcast is joining Spotify on a $60 million, three-year deal

The Daddy Gang is headed to Spotify. Earlier this week the audio giant announced they had signed the popular advice podcast Call Her Daddy, which covers topics like mental health and dating, to an exclusive multi-year agreement. The three-year deal, worth a reported $60 million, will bring all future episodes and properties of the show exclusively to Spotify. Notably, the deal also separates the show from Barstool Sports, who willingly gave up the show’s IP in favor of merch rights after helping catapult the podcast into the mainstream back in 2018. 

Big Numbers, Big Payout

Despite being only three years old, Call Her Daddy has consistently been one of the world’s biggest podcasts. It was the No. 5 most listened to show on Spotify in 2020, and has consistently found itself among the Top 15 across all platforms since its launch with a reported 3 million listeners.

100% Of The Pie

In her first episode since the deal’s announcement, podcast host Alex Cooper noted that despite her partnership with Barstool and split from her old co-host Sofia, she owns 100% of the Call Her Daddy IP. That’d be like Jimmy Fallon leaving NBC and keeping the Tonight Show.

Our Take

People follow people. This makes it all the more difficult when a person outgrows the organization they've been brought up in. Alex Cooper leaving Barstool with 100% of the IP that she built there is a rare occurrence and a huge win for creators like her. It sets a precedent for future creator deals.

Netflix Launches Merch

Why the streaming giant is launching a digital store to take on Disney

The world’s biggest streaming company is launching merch. Late last week Netflix launched Netflix.shop, an ecommerce site that allows fans to purchase products centered around their favorite shows. The shop will take a page from the Hypebeast book, regularly dropping new merch tied to some of the platform’s biggest content, and doesn’t require a Netflix subscription to make a purchase.

More Than Video

Today, Netflix only makes money from subscriptions to their streaming platform. That means when shows like Queen’s Gambit go viral and drive up chess sales 178%, the company doesn’t see a cent. With a merch store, Netflix simultaneously offers new ways for super fans to show their love, while also letting the company cash in on their biggest titles.

Bringing Down the Mouse

When it comes to diversification, no company is better than Disney. Think about it: you fall in love with Disney characters via their movies. You buy Disney+ to watch shows, and you visit Disney parks to experience the magic. Netflix wants to build a similar model. Is it so weird to imagine a theme park based on The Witcher?

Our Take 

The best stories don’t stop when the video ends. Just like Disney, creators can build worlds full of wide-ranging products and services for their audience to interact with. As creators look for ways to grow their business, content should be a means to an end, not the only focus.

Introducing Spotify Greenroom

The newest competitor to the live audio space is coming from a familiar face

Earlier this week Spotify unveiled Greenroom, the company’s foray into the world of live audio. The product, which launched on iOS and Android as a standalone app, allows users to host live conversations, build clubs, and tip their favorite creators. The app also includes two new features:  native recording, which allows hosts to record in-app and distribute content via the Spotify network, and a live chat, which allows participants to chat alongside hosts. The company also announced an upcoming Creator Fund for the product, with multiple exclusive deals expected to be announced later this summer. 

The Same Old Song

Live audio is a saturated market. While Spotify knows the audio business, they still have to vie with Twitter, Discord, Facebook, LinkedIn, and Clubhouse just to keep consumer attention. “Nice to have” features can’t beat competitors, but content can.

Our Take 

Using one platform, Spotify creators can host live shows, grow a free podcast audience, launch subscription content, and eventually sign multi-million dollar deals. Spotify is doing to audio what YouTube did to video: attracting the best programming by offering the best tools.

🔥 In Other News

• Facebook launches podcasting next week 

• TikTok replaced YouTube as the title sponsor for Vidcon

• David Dobrik returned to weekly vlogging 

• Ziwe signed with Amazon to launch a comedy TV show