Spotify Tries to Lure Book Lovers

This episode discusses Spotify's strategic shift from music streaming to including audiobooks in its offerings, aiming to compete with established audiobook providers like Audible.

1. Spotify is expanding its services beyond music and podcasts to include audiobooks.
2. The company faces challenges and criticism regarding its audiobook pricing and royalty payment models.
3. Spotify's audiobook feature is now available in multiple countries, with varying access based on subscription type.
4. The industry response has been mixed, with some publishers and authors expressing dissatisfaction.
5. The competition between Spotify and Audible is intensifying, influencing strategies on both sides.

1. Introduction

David Brown introduces the topic of Spotify's expansion into audiobooks, framing the episode's focus on the shift from music to broader audio content. David Brown: "Remember the old days when the name Spotify was synonymous with music? Ah, such a simple time."

2. Spotify's Strategy

The chapter details Spotify's strategic acquisitions and its push into the audiobook market, including the initial rollout and subscriber reactions. David Brown: "Spotify began chasing the latest innovation in media...podcasts, right? And now...turning the pages."

3. Industry Impact

This chapter discusses the impact of Spotify's audiobook feature on the publishing industry and the controversies arising from its royalty payment model. David Brown: "Spotify appears to have angered the publishing industry."

4. Competition with Audible

Exploration of how Spotify's offerings compare to Audible's, highlighting the competitive dynamics between the two companies. David Brown: "Can Spotify, with its hefty investments, topple an audiobook mainstay?"

1. Consider diversifying your content consumption across different media platforms to explore various content types.
2. Evaluate subscription plans thoroughly to understand the cost-benefit ratio, especially in terms of content access and limitations.
3. Stay informed about changes in content platforms' policies, especially regarding pricing and content availability.
4. Support authors and publishers by understanding the royalty models of the platforms you use.
5. Keep an eye on industry trends to anticipate new features or services that may enhance your listening or reading experience.

Today is Friday, April 12, and we're looking at Spotify vs. Audible.

People

David Brown

Companies

Spotify, Audible (Amazon)

Books

None

Guest Name(s):

None

Content Warnings:

None

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David Brown

From wondery. I'm David Brown, and this is business wars daily on this April 12, Happy Friday, one and all. Remember the old days when the name Spotify was synonymous with music? Ah, such a simple time. In 2015, roughly nine years after its founding, Spotify began chasing the latest innovation in media.

You know what I'm talking here, podcasts, right? In 2019, it shelled out nearly $340 million to pick up two podcast production companies, Gimlet and Anchor. While Spotify rose in the ranks of podcasting, it's now home to arguably the world's most popular podcast by a certain Joe Rogan. Its quest to dominate the global podcasting market did have some challenges. Its acquisition of Gimlet was marred with layoffs and cancellations.

And in 2023, it laid off 200 more folks and combined what was left of its acquisitions into a single podcasting arm. While those moves made waves, and not altogether positive ones, with the podcasting community at large, Spotify appears to have emerged mostly unscathed. And now Spotify appears to be trying to turn the page on all that by turning the pages. Yep, what was once a music only destination is leaning into audio books. Last fall, it rolled out a new audiobook feature for its paid subscribers.

Those folks could have access to 200,000 titles for no extra charge, but they were limited to two titles a month and 15 hours of listening. Book lovers certainly took note. Spotify says that since it launched, users have listened to 150,000 titles, and now the feature is spreading. Last week it hit Canada, Ireland, and New Zealand after already being available in the US, UK and Australia. How many hours you can spend listening depends on how much you pay if you listen to music on Spotify without paying.

That is, if you listen to music with ads, you can't access the audiobooks unless you pay a ten dollar flat fee monthly, which will get you 15 hours. But premium users, those who pay for ad free music for $11 a month, can have 15 hours of audiobooks for free. Some think those numbers dont quite make a lot of sense. As the verge notes, audiobook listeners are paying nearly the same amount while getting half the benefits. And like its podcast acquisition, Spotifys push into audiobooks hasnt been without controversy this time.

Spotify appears to have angered the publishing industry. Bloomberg reported that some publishers, like Macmillan, told writers they would only receive royalty payments even if users listen to their entire books through thats different from other models where authors are paid when their titles are purchased. Bloomberg noted that Spotify may have different terms with publishers. Despite the pushback from authors, however, Spotify is marching on. The company has said that its now the second largest audiobook provider behind a longtime figure in the audiobook world, and that would be audible.

Audible is owned by Amazon, which we should mention also owns wondery. Audibles pricing structure is different from Spotify's. For $15, listeners can get unlimited hours of listening to a selection of titles, plus a monthly credit to purchase one book they get to keep. Users can also directly purchase audiobooks for around $15 to $17 a pop. That unlimited listening is a step up on Spotify.

But Spotify, the Verge notes, has many more titles in its subscription plans than does audible. Like any good novel, the stage has been set for a pretty climactic scene between these two companies. Can Spotify, in its hefty investments, topple an audiobook mainstay? Will audible expand its subscription plans to lure in more users? And for the love of when will the next fourth wing book be out?

We'll have to wait and see, but in the meantime, this story is sure to be a page turner. From wondery, this is Business wars daily. I'm your host, David Brown. Written and produced by Jesse Urloski. Our executive producers are Tina Rubio and Marshall Louie.

Hey, Prime members. You can listen to business wars daily ad free on Amazon Music. Download the Amazon Music app today. Or you can listen ad free with wondery in Apple Podcasts. Before you go, tell us about yourself by completing a short survey@wondry.com.

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