Spotify audiobooks ‘reshape market’ with huge growth

Months after launching its streaming audiobook service in the US, UK, and Australia, Spotify has reported significant user engagement, with approximately 90,000 titles accessed. Among these, Britney Spears’ memoir “The Woman in Me” has emerged as the top choice among listeners. While Spotify has been tight-lipped about specific numbers, the company announced that it has paid “tens of millions” of dollars to audiobook publishers, highlighting the service as a “meaningful incremental revenue stream for the publishing community,” and a change to the market.

Spotify shakes up the audiobook market

This introduction to audiobooks by Spotify appears to be reshaping the market landscape. According to the New York Times, which cited data from Bookstat, the audiobook market in the United States saw a 14% growth in the fourth quarter of 2023 over the previous year, excluding Spotify’s contributions. With Spotify’s inclusion, the sector’s growth doubled to 28% for the same period. This rapid growth has positioned Spotify as a significant player in the market, capturing an 11% share of the US audiobooks market, placing it ahead of Apple and trailing only behind the market leader, Audible.

Read: Spotify audiobooks: a challenge to the publishing world

Spotify unveiled its audiobook streaming service in October 2023, initially launching in the UK and Australia before expanding to the US in November. The service, available to Spotify premium subscribers, offers 15 hours of audiobook access per month. This model enables users to explore the catalog or dive into complete works, with the option to purchase additional listening time. The move leverages Spotify’s acclaimed discovery and recommendation features, aiming to enrich the user experience.

Spotify told The Bookseller: “We are seeing exponential sales growth from our big publishers and strong interest in titles from our Voices authors. For instance, Brianna West’s The Mountain is You has been a runaway hit garnering hundreds of thousands in sales for this quarter, nearly a 3,000% increase in sales since joining our premium catalogue.” 

Publishers optimistic, authors concerned: navigating new revenue models

However, the reception among the publishing community is mixed. While publishers express optimism regarding revenue and the opportunity to reach new audiences, some authors and agents have voiced concerns over the potential for streaming to cannibalise traditional sales. Despite these concerns, early indicators suggest that Spotify’s audiobook service is making a positive impact. However, it can’t be ignored that Spotify’s entry into the market has also caused Audible to make job cuts.

Read: Audible announces job cuts despite strong year

The strategic expansion into audiobooks by Spotify reflects a broader trend of digital platforms seeking to diversify content offerings to capture more of the entertainment and media market. As the audiobook sector continues to grow, services like Spotify’s are not only contributing to this expansion but are also introducing new revenue models and consumption patterns. This evolution could redefine how listeners engage with books, offering unprecedented access and flexibility in how stories are consumed.