The Joe Rogan deal is about eyes and ears.

In fact, at its essence, the business of media and entertainment is pretty simple; sales dollars chase eyes and ears.

It’s always been that way.

TV blew up in the late 1940’s as people wanted to see Milton Berle. The Yankees played to empty seats as the third ranked baseball team in New York until Babe Ruth joined the team from Boston — good move Red Sox. Games were won, seats were filled and Yankee Stadium earned its place as the “house that Ruth built.” Netflix pivoted from sending DVD’s in the mail to delivering movies online just as broadband was exploding and then brilliantly added compelling original content like House of Cards.

Sirius Satellite Radio was fledgling until they brought Howard Stern on board and millions of people gave them Mastercard numbers.

Media And Entertainment Are Pretty Simple Businesses — Sales Dollars Chase Eyes And Ears

That’s why the Joe Rogan deal is easy to understand — bring in a big name who can jet propel use of Spotify for podcasts. And SPOT investors seem to like it, pumping the stock by 20% last week and driving the market cap up by $1.7 billion in 23 minutes.