After music and podcasts, Spotify aims to make audio books the third pillar of its streaming platform. According to Daniel Ek, its CEO, this market would be a “huge opportunity”.
Spotify currently relies on two types of audio content: music and podcasts. But the audio streaming platform says it wants to get into audiobooks.
Last November, the streaming service confirmed the acquisition of Findaway, a company specializing in the distribution of audio books. If the agreement found is not yet confirmed, Spotify still believes that audiobooks are part of its future. Redemption is ” under review by the Justice Department’s Antitrust Division », note The Verge.
The audiobook market, a huge opportunity »
This is the qualifier used by Daniel Ek, co-founder and CEO of Spotify, to talk about the audiobook market. In a note to investors, he explains that “ the overall size of the book market is estimated at around $140 billion“. This market would be a great financial windfall for the platform, which expects “that audiobooks also have healthy margins, over 40%, and are very profitable for the business“. On the strategy side, Spotify provides the same approach as for the podcast for example, with availability everywhere, customization and a Freemium model. All with a view to convincing users and creators.
A market that would be doing rather well if we are to believe a barometer on the uses of audio books relayed byFrance Info. Il « counts 800,000 new “audio-readers”, i.e. 9.9 million audio-readers in Franceover the year 2021. An opportunity already largely occupied by Apple Books, which sells audio books, but also by Amazon with its Audible formula.
Spotify’s formula for audiobooks
If the operation of the service is not yet very clear, we can assume certain things. Some audiobooks could be free, saysThe Verge, speaking of Spotify’s Freemium model. A model that will be ad-supported as Dawn Ostroff, head of content and advertising at Spotify, told the media outlet considering “to introduce advertising monetization in audiobooks ».
With audiobooks, Spotify would have three main axes: music, podcast and audiobook. But Daniel Ek teaches us to have other projects in mind, without saying more. No release date for an audiobook service has yet been announced. When Spotify gets into audiobooks, it should expand the market by potentially several million new listeners, as Michele Cobb, executive director of the Audio Publishers Association (APA) toldThe Verge. But if the number of listeners increases, per-unit revenues could fall.
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