Spotify to Offer Paying Subscribers Free Audiobook Trial
Audio streamer to test program with listeners to learn about customer demand for audiobooks
By Anne Steele and Jeffrey A. Trachtenberg
Wall Street Journal
Updated Sept. 7, 2023 8:29 pm ET
A recording booth in Spotify’s Los Angeles office. / PHOTO: EMANUEL HAHN FOR THE WALL STREET JOURNAL
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Spotify plans to test a free audiobook bundle for its paying subscribers in the coming months, part of a push to become a go-to provider of that content.
The streaming service is working with some of the largest publishers in the U.S. on the pilot program, which would allow subscribers to listen to up to 20 hours of audiobooks a month at no additional cost, according to people familiar with the matter. Details are still evolving, but the company expects to offer the program for a limited time and aims to gauge customer interest in audiobooks.
Audiobooks represent a way for Spotify to diversify its offerings to subscribers—and its sources of revenue. Executives at Spotify are eager to challenge incumbent audiobook platform Audible, and told some publishers that their participation would help break the Amazon.com -owned platform’s hold on the industry, some of the people said.
Spotify is trying to achieve consistent profitability to appease investors. Audiobooks, like podcasts, represent a burgeoning market and a popular format among listeners, but one that requires investment from the company and an expansion from its core business of streaming music.
Spotify in July said it is raising the price of its premium individual plans in major markets around the world for the first time, by $1, to $10.99 a month.
It has discussed a wide range of compensation models for publishers, including payments based on the amount of time users spend listening to books.
The test will likely roll out over time to a group of English-speaking countries, including the U.S., Canada, Australia and the U.K. The scope of titles available through the program is expected to be broad, but is still being finalized.
Spotify entered the audiobook business a year ago, initially offering a catalog of more than 300,000 titles from independent authors and major publishers, including titles by horror writer Stephen King, journalist Malcolm Gladwell and romance novelist Abby Jimenez for purchase. Books have been available on a pay-per-download basis, similar to services offered by Apple and Google.
Chief Executive Daniel Ek has said Apple’s App Store policies have hampered the rollout of Spotify’s audiobook offerings. Soon after last fall’s announcement, Spotify directed users to make purchases through a web browser instead of inside the app.
While it is a more cumbersome user experience, the move was intended to keep Apple from taking up to a 30% commission for downloads. Spotify has been fighting Apple over its in-app purchase policies for years.
Under the new test program, subscribers will be able to access the free audiobooks directly in the app.
Spotify in late 2021 announced its acquisition of global audiobook distributor Findaway. Earlier in the year, it reached an agreement with audiobook streaming service Storytel to make Storytel’s library of audiobooks available on Spotify to subscribers who linked their accounts.
Write to Anne Steele at anne.steele@wsj.com and Jeffrey A. Trachtenberg at Jeffrey.Trachtenberg@wsj.com
Spotify to Offer Paying Subscribers Free Audiobook Trial - WSJ (archive.ph) |
