The Spotify company plans to add audiobooks to its platform, which would be its third most important pillar behind music and podcasts. Due to this, there is an opportunity for profit of more than 66,000 million euros. Daniel Ek, founder and director of Spotify, has published his annual meeting with the platform’s investors on his website.
Ek, has pointed out that the global book market is valued at about 132,000 million euros; a figure that includes printed books, eBooks and audiobooks, which represent only between 6% and 7% of that market share. Audiobooks are expected to be a profitable business on Spotify with a “healthy margin” above “40%”.
The founder of Spotify has endorsed his speech after the purchase of the audiobook distributor Findaway, which is awaiting approval by the Antitrust division of the United States Department of Justice.
This acquisition aims to diversify the success of the platform that has had thanks to the reproduction of its music and podcasts, since through Findaway it is possible to match authors with narrators and to become a valuable source of income for Spotify. Findaway’s publishing partners are companies such as Amazon, Audible, Apple iBooks and Storytel, among others, so it would have a catalog of more than 325,000 books.
The goal is that more and more people can find many more stories of their choice.
The director of audiobooks at Spotify, Nir Zicherman mentioned
“this new addition will speed up a catalog of audiobooks on the platform so that users have a more effective way to access all the content they want in one place.”
It seeks to emphasize “innovation” in the audiobook space and have a “richer” experience of “democratization” in the creation and distribution of audiobooks.
Audiobooks will be available in the ‘freemium’ branch to make them a more accessible business. It has also been noted that the entry of audiobooks will help “expand the market and create value for users and creators,” according to Daniel Ek.
El Mundo. (2022). Los audiolibros tendrán su propio espacio en Spotify. Literatura. https://www.elmundo.es/cultura/literatura/2022/06/10/62a337ebe4d4d88e458b45c2.html
Expansión. (2021). Spotify ahora va por el mercado de audiolibros y adquiere Findaway. Tecnología. https://expansion.mx/tecnologia/2021/11/12/spotify-ahora-va-por-el-mercado-de-audiolibros-y-adquiere-findaway