Prince Harry and Meghan Markle’s new business partner Spotify paid less than £1million in UK taxes last year despite earning £6billion globally, reports claim.
The Sussexes recently signed a £30million deal with the streaming service to produce and host their own shows as part of the newly formed Archewell Audio.
Their latest venture will begin with a ‘holiday special’ that the couple hopes will ‘uplift audiences around the world’, it was announced on Tuesday.
Spotify has not revealed what the contract is worth, but the streaming service agreed a £75million ($100m) deal with US comedian Joe Rogan in May.
Earlier this year, Michelle Obama launched The Michelle Obama Podcast for an undisclosed fee with Spotify and had her husband Barack on as one of her first guests.
The Mirror reported the Sussexes would be paid £30million in the deal, while other sources put the figure closer to £20million.
Prince Harry and Meghan Markle’s new business partner Spotify paid less than £1million in UK taxes last year despite earning £6billion globally, reports claim
The Sussexes recently signed a £30million deal with the streaming service to produce and host their own shows as part of the newly formed Archewell Audio
Despite these lucrative deals, it has been claimed Spotify UK only paid £994,152 in British taxes in 2019 while earning £6billion around the world.
Spotify, which has 144million premium subscribers worldwide, reportedly had a turnover of £90.3million in Britain last year – with a profit of £6.3million before tax.
Another Spotify UK firm which earns revenue from ‘intercompany commission fees’ generated £19.3million in turnover last year, reports claim.
The Sussexes’ podcast agreement comes just months after the royals agreed a £100million partnership with Netflix and days after Meghan invested in a £21-per-pack oat-milk ‘superlatte’ business later promoted for free by her LA neighbour Oprah Winfrey.
A ‘well placed’ royal source told the Mirror: ‘The initial multi year deal is worth in excess of £30 million with a view to extending the deal within six months.
Pictured: Daniel Ek, CEO of Spotify at the Company Conference in Sun Valley, US last July
Earlier this year, Michelle Obama launched The Michelle Obama Podcast for an undisclosed fee with Spotify and had her husband Barack on as one of her first guests
‘Meghan was the driving force behind the deal. She was incredible in the meetings with executives and had a clear vision of what they as a couple have to offer.
‘Spotify’s whole business plan is to acquire the world’s most talked about celebrities in one place and Harry and Meghan fit the bill entirely. It’s a win win scenario.’
The big name celebrities who already have high-profile podcasts on Spotify
Harry and Meghan are the latest high profile name to take up podcasting on streaming service Spotify.
The Swedish media service is already home to the podcasts of big names, including Michelle Obama.
The Swedish media service is already home to the podcasts of big names, including Michelle Obama
The former First Lady of America hosts The Michelle Obama Podcast on the platform after her production studio Higher Ground signed a major deal with Spotify last year.
It features Mrs Obama diving deep into conversations with loved ones — family, friends, and colleagues.
Grounded with Louis Theroux is also extremely popular on the streaming service.
The BBC podcast on Spotify involves the documentary maker sitting down for a talk with big names, such as actress Helena Bonham Carter.
Grounded with Louis Theroux is also extremely popular on Spotify
US talk show host Oprah Winfrey, who lives near the Sussexes, has also launched the popular Oprah’s Supersoul Conversations, while Stricly Come Dancing host Claudia Winkleman also has a podcast on Spotify, in which she discusses topics around family issues with clinical psychologist Professor Tanya Byron.
Other celebrity podcasts on the streaming service include Happy Place by Fearne Cotton and Castaway by Love Island host Laura Whitmore.
A trailer clip of Archewell Audio was released on Monday, accompanied by a short description which reads: ‘Prince Harry, the Duke of Sussex and Meghan, the Duchess of Sussex, present Archewell Audio. Coming soon to Spotify.’
The Spotify trailer featuring the Sussexes opens with Harry saying to his wife: ‘Ladies first’ before his Meghan says: ‘No you say it first because I think it sounds really nice with your accent’.
The Duke of Sussex then says: ‘Archewell Audio’ and they say together: ‘Let’s do it’.
Prince Harry then says: ‘Hi guys, I’m Harry’ before Meghan says: ‘And I’m Meghan’, with both choosing not to use their titles.
Meghan then says: ‘One of the things my husband and I have always talked about is our passion for meeting people and hearing their stories. And no matter what the story they usually offer an understanding of where someone else is coming from. And in some way, remind you of a story about yourself’.
Harry continues: ‘And that is what this story is all about. To bring forward different perspectives and voices that perhaps you haven’t heard before. And find our common ground. Because when that happens change really is possible’.
The Duchess of Sussex says that the podcasts will be about ‘finding kindness and compassion, something we saw in some many places this year’.
She adds: ‘It will underlie everything you here on Archewell Audio – so that’s what we’re up to’.
Their first show will be a ‘holiday special’ this month will ‘feature stories of hope and compassion from inspirational guests in celebration of the new year.’
The Sussexes stopped royal duties in January this year, and have been criticised for using their newly independent status to sign multi-million pound deals while retaining their official titles.
The Sussexes’ agreed a £100million partnership with Netflix.
This was followed by the revelation earlier this week that Meghan had invested in a new range of oat milk vegan ‘superlattes’, which sell for £21 per pack.
Harry, 36, and former Suits actress Meghan, 39, are also set to earn as much as £770,000 for delivering online talks – on condition of an upfront fee and the ability to pick any moderators.
The Duke spoke at a J P Morgan event in Miami earlier this year where he received a reported six-figure sum.
MailOnline has contacted the Sussexes and Spotify for comment.