Keeps You Updated!

‘I feel good’ about how Joe Rogan controversy handled

Spotify shares fell more than 16% in the middle of the day on Thursday after medium-growth forecasts disappointed some investors.

But CEO Daniel Ek said that the growth forecasts for the first quarter should not be so big for investors.

“Let’s just start with our 4th quarter. 406 million users, 180 million subscribers. It was our biggest quarter ever when it came to growth, and we hit pretty much all polls. So I’m incredibly proud of that. When that being said, the 1st quarter honestly means a lot less to our business overall than the other three quarters.So I think investors might react to that, but I feel really, really confident about our overall growth path, “Ek told CNBC’s” Squawk on the Street. ”

Ek also said he is happy with how the streaming company has addressed growing controversy surrounding podcaster Joe Rogan, including concerns from doctors that the celebrity is spreading Covid-19 misinformation about his show.

Spotify has been embroiled in controversy since musicians Neil Young and Joni Mitchell recently boycotted the service to continue hosting “The Joe Rogan Experience,” which has been accused by doctors of spreading misinformation about Covid. On Wednesday, Young’s former bandmates asked Crosby, Stills and Nash to withdraw their content from Spotify.

Spotify responded to the controversy by announcing for the first time its content policies, which address dangerous, misleading, sensitive and illegal content. The company said Sunday it would add content advice to all material mentioning Covid-19, following a riot from musicians, public health officials and some users who claimed that Spotify needed to adopt stronger policies to combat Covid-19 misinformation .

“When you look at what the scientific community has asked us to do, it was really about three things and all three things we delivered over the weekend,” Ek said.

“So I’m fine with that.”

On the company’s earnings call on Wednesday, Ek explained that the company is trying to support creative expressions while ensuring user safety.

“I think the important part here is that we do not change our policies based on one creator, nor do we change it based on any media cycle or calls from anyone else,” Ek told investors during the call. “Our policies have been carefully written with input from a number of internal and external experts in this field. And I think they are right for our platform. And even though Joe has a massive audience – he is actually the number one podcast in more than 90 markets – he must also comply with these policies. “

The company’s response repeats policies from Facebook and other social media platforms that have struggled with users generating or sharing misinformation or harmful material. But unlike these platforms, Spotify signed an exclusive deal with Rogan and pays him – a relationship much more akin to a traditional media company’s deal with content creators.

– CNBCs Jessica Bursztynsky contributed to this report.

Leave a Reply

Your email address will not be published. Required fields are marked *