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Spotify launches Audiobook service in US with 300,000 titles in library

Spotify launches Audiobook service in US with 300,000 titles in library

As part of its strategy to move beyond music and podcasts, Spotify Technology SA has reportedly announced that it will soon start selling audiobooks in the U.S.

Users of Spotify will have access to a library of more than 300,000 audiobooks from well-known publishers and popular works like that of romance author Abby Jimenez, journalist Malcolm Gladwell, and suspense novelist Stephen King among others.

The service, which went live on Tuesday i.e., 21st September in the United States, will ultimately expand to other areas soon.

Notably, the books will be offered on a pay-per-download basis, much like current audiobook services provided by Apple Inc. and Google LLC. Although Spotify is well recognized for its user-specific music suggestions—and is trying to expand that to podcasts as well—it will make editorially curated audiobook recommendations, to begin with.

Additionally, the business has announced that it will seek to gradually integrate algorithms for recommendations based on a user's comprehensive listening behavior.

It is worth mentioning that Spotify acquired worldwide audiobook distributor Findaway last July, creating a competitive environment and openly proposing a challenge to the nation’s largest audiobook service, Audible, a unit of Amazon.com Inc. The music company claimed that it will set individual rates for each title and enter into direct negotiations with publishers.

In contrast, Audible users can access 760,000 audiobooks and other resources, including its originals, by subscribing to a monthly charge. Sources claim that Audible held a 48% revenue share of the U.S. audiobook market for the month that concluded in mid-April.

Nir Zicherman, Vice President of Spotify and Head of Audiobooks, said that the company is investigating several business models such as ad-supported, subscription, and exclusive titles.

As part of his plan to grow the firm tenfold, Spotify's CEO Daniel Ek identified audiobooks as a significant area for expansion during the company's investor day in June. He added that this could mean receiving up to USD 70 billion in annual revenue with 40% profits for the Swedish audiobook platform.

 

Source Credit: https://www.wsj.com/articles/spotify-offers-audiobook-service-with-300-000-titles-11663674852?mod=tech_lead_pos6

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Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.