Spotify is planning to create an audiobook platform in addition to music and podcasts.Audiobooks have a $70 billion market potential, according to the business.
Spotify, the world’s largest music streaming service, is developing a new audiobook platform.Spotify founder Daniel Ek revealed the move during the company’s investor event.”And, just like we’ve done in podcasting”, Ek said at the summit, “expect us to play to win”.
Ek stated at the summit that the book market, which comprises printed books, e-books, and audiobooks, is currently valued at roughly $140 billion, with audiobooks accounting for only 6-7 percent of the market.He also stated that the audiobook market might be worth up to $70 billion, which is why the company is aiming to make significant investments in this area.
It’s worth remembering that Spotify made its first major step toward developing an audiobooks platform last year when it purchased Findaway, a digital audiobooks distribution business, in November.”Together, Spotify and Findaway will accelerate Spotify’s entry into the audiobook space and continue to innovate the industry, working to remove current limitations and unlock better economic tools for creators”, Spotify said at the time, implying an audiobook foray.
“Findaway’s technical backbone will enable Spotify to rapidly scale its audiobook repertoire and innovate on the consumer experience while also creating new channels for publishers and authors to reach audiences across the world”, the business said.
Now, the corporation has formally stated its intention to enter the audiobook industry and make it the company’s third pillar.Music and podcasts are the other two options.
However, Spotify’s strategy has a big flaw.The agreement hasn’t been closed yet, despite the fact that the two corporations have finalised the specifics.The antitrust section of the Department of Justice is still looking at it.Spotify’s intentions to develop an audiobook platform are on hold until that happens.
According to Ek, the company’s planned audiobook streaming platform will offer a mix of “ubiquity, personalisation, and Freemium” in terms of availability.This means that when the service launches, you can expect a mix of free and subscription-based titles from the firm.
In India, Amazon’s Audible now costs Rs 199 a month, while Google audiobooks costs around $17 (Rs 1,323), with some volumes costing as much as $42. (Rs 3,269 approximately).In these circumstances, how competitively Spotify prices its audiobook titles remains to be seen.