Spotify takes £34 million hit following cull of failed deals days after Meghan Markle's podcast snubbed

Spotify has reportedly taken a £34 million hit after performing a cull of failed podcasts, after Meghan Markle and Prince Harry's contract with the music giant was terminated last month. Spotify revealed that it had taken a hit as a result of "write-offs and contract termination" costs "in connection with rationalising our podcast content portfolio".

Spotify’s CEO Daniel Ek said the company was "stepping out of some deals and relationships that haven’t worked out". “We overpaid relative to what we should have done,” he added, according to GB News.

When Meghan Markle’s Spotify podcast was snubbed

Spotify laid off about 6% of its 6,600 workforce back in January, and hundreds of more employees later. Spotify’s head of podcast business, Sahar Elhabashi, wrote in a blog post, “We have made the difficult but necessary decision to make a strategic realignment of our group and reduce our global podcast vertical and other functions by approximately 200 people, or 2% of Spotify’s workforce.”

The decision came after Harry and Meghan’s famous audio deal could not rake in the amount of money that was expected. Shortly after, the couple’s podcast was snubbed by Spotify. Insiders close to Spotify have claimed the royal couple failed to meet the productivity benchmark that was needed to receive the full payout, according to Wall Street Journal. Meghan, however, is reportedly planning to create more podcasts.

After the end of the first season, Spotify was reportedly planning to release a second season. Sources close to Meghan and Harry have claimed the couple would stop making Netflix documentaries, publishing memoirs and appear for interviews that do not speak well of the Royal Family.

Recent reports have been suggesting that the Duke and Duchess of Sussex are currently under tremendous financial pressure and are finding it hard to fund their lifestyle. While Meghan’s Spotify podcast was recently snubbed, their Netflix deal reportedly remains intact.

It is believed Harry recently reached out to Prince William to discuss the possibility of returning to the UK. According to royal commentator Richard Fitzwilliams, making this U-turn would be a "humiliation" for the couple.

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