Spotify's audiobooks vertical (which has yet to be launched) might significantly impact both Spotify and the publishing sector. Audiobooks are Spotify's next business pillar. Investors heard from officials of the firm on Wednesday about their plans to take over the audiobook market.
Music streaming service Spotify's CEO Daniel Ek believes audiobooks will be a huge market. "And expect us to play to win, just as we've done in podcasting."
The announcement of Spotify's purchase of Findaway last year was its first significant move into this industry. In many respects, the audiobook platform resembles Anchor. One of the most important parts of the audiobook ecosystem has been snatched up by Spotify, thanks to this purchase. When it comes to audiobooks, Spotify's executive in charge of audiobooks is none other than Nir Zicherman, the co-founder of the audiobook platform Anchor.
The Findaway transaction hasn't officially concluded yet, so keep that in mind. First announced in November 2021, the deal was scheduled to be completed by year's end. However, the antitrust section of the Department of Justice is still looking into the acquisition.
USPs and Cost of The Audiobooks
However, it appears that at least some of the audiobooks will be available for free. "We're looking at introducing ad monetization into audiobooks," said content and ad business head Dawn Ostroff in response to Ek's claim that the freemium model would be extended to audiobooks.
If that's the case, the industry is in for a major shakeup. In general, audiobooks aren't the cheapest option. Based on credits, Audible and audiobooks.com provide subscriptions to their services (1 credit per book). Both sites charge $14.95 a month to access a large library of popular movies and TV shows. For $15 or more, popular audiobooks may be purchased through Apple and Google. Though it is unknown how and at what price top-tier novels will become accessible on Spotify, it is also doubtful that most Findaway artists will be the next Sally Rooney.
This has implications for the publishing sector. Audio Publishers Association (APA) executive director Michele Cobb says it's tricky. As a result, the audiobook market benefits enormously from the exposure it will get from the influx of new listeners from across the world.
An Overview of the Audiobooks Industry
The APA announced its 2021 industry data earlier this week. Audiobooks are expected to reach $1.6 billion in revenue in 2021, a 25 percent increase over the $1.45 billion podcast market that year, according to a report by Edison Research According to a Grand View Research analysis, Spotify believes the market is significantly larger, with a potential value of more than $9 billion.) According to Ek, the market might be up to $70 billion in the future. It is worth noting that the APA report is focused mostly on North America, but the Grand View number is worldwide in scope.
If you can get enough income, Cobb hopes, "everyone will be better off." There is a risk, however, that revenues may be depressed due to the lower price per unit. It is possible that Spotify's creator content and ad-supported listening might have negative consequences for audiobook publishers and writers.
Featured image: Spotify
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