Music giant Spotify has reportedly taken about $45 million hit after Meghan Markle and Prince Harry’s contract with the service was terminated last month.
The audio streaming platform revealed that it had taken a hit as a result of “write-offs and contract termination” costs “in connection with rationalizing our podcast content portfolio”.
The network’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,” according to GB News.
The audio streamer reportedly laid off about 6% of its 6,600 workforce back in January, and hundreds of more employees later.
Sahar Elhabashi, Spotify’s head of podcast business, 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 the streamer.
Insiders close to the giant have claimed the royal couple failed to meet the productivity benchmark that was needed to receive the full payout, according to Wall Street Journal.
The Duchess, however, is reportedly planning to create more podcasts.
Meghan and Harry are reportedly under tremendous financial pressure and are finding it hard to fund their lifestyle. Amid backlash and snubs, the Duke recently reached out to William to discuss the possibility of returning to the UK.
Meanwhile, some critics and royal experts believe Harry and Meghan’s U-turn would be a “humiliation” for the couple.