How Alex Cooper's $125 million podcast deal with SiriusXM actually works

• Alex Cooper signed a three-year deal with SiriusXM that's reportedly valued at up to $125 million.
• The deal surpasses her previous $60 million Spotify contract and SmartLess's $100 million deal.
• Insiders laid out the targets and goals she'll likely have to meet to hit that lofty number.

Star podcaster Alex Cooper grabbed headlines last week when the news came out that she'd reached a three-year deal with SiriusXM that outlets like CNBC and Variety pegged at "up to $125 million."

It's a jaw-dropping figure — more than twice her previous $60 million deal with Spotify back in 2021 and higher even than the reported $100 million snagged earlier this year by SmartLess. But the "Call Her Daddy" host can't exactly sit back and cash a check for $41 million each year.

Three insiders with knowledge of how SiriusXM negotiates such deals said the contract would contain a set of caveats. She can earn as much as the widely reported $125 million — but it won't be easy. These insiders spoke with Business Insider on the condition of anonymity to discuss private contract negotiations.

First, the three insiders said podcasting companies like SiriusXM had gotten smart about downside protection. Gone are the days when the likes of Spotify would shell out tens of millions to Meghan Markle and Prince Harry without a clear proof of concept or sign high-profile deals with celebrities like Mark Wahlberg with few strings attached. Even the most popular podcast hosts have to hit certain targets.

Now, there is something that one podcast industry veteran referred to as "download insurance." A podcast deal with a host like Cooper would be based on a certain number of downloads a month. It could be her current number or one based on an expectation of growth. If that download number falls short by a substantial amount over a sustained period, her payout could drop.

"These networks want to have some kind of downside protection," a top audio agent said. "All the buyers have just gotten more risk averse since 2023 when the economy got more wonky."

Cooper's SiriusXM deal is also not just for "Call Her Daddy," but for her Unwell Network's "complete slate of current and future shows." That includes podcasts from influencers like Alix Earle, Madeline Argy, Harry Jowsey, and Owen Thiele — as well as potential others to come. SiriusXM pays Cooper for the shows, but she has to pay the other hosts in the network.

The industry insiders said contracts like Cooper's from SiriusXM also include other targets that need to be hit to reach their full potential, like live events and programming for the company's satellite radio.

Cooper is undoubtedly one of the biggest forces in podcasting. Her show was the second most popular on Spotify last year, and in the first quarter of this year, "Call Her Daddy" had the seventh largest podcast audience in the US, according to Edison Research. The benefits she brings also extend beyond Cooper herself — signing her could help SiriusXM attract the next audio star.

"SiriusXM is the perfect home for Alex to continue her amazing growth trajectory, with our unique ability to introduce her and her growing roster of standout talent to new listeners, as well as super-serve her core fans with new content," Scott Greenstein, president and chief content officer at SiriusXM, said in an announcement. "Alex is the voice of a new generation, and I can't wait to see what we do together in the years to come."

"The buyers are getting tremendous value," the audio agent said. "There's only one 'Call Her Daddy.'"

But SiriusXM will only be shelling out $125 million if that "tremendous value" is fully realized over the next three years.