From The Bookseller:
Spotify has revealed plans for an aggressive expansion into the audiobook market as it aims to launch a third pillar focusing on audiobooks, alongside its music and podcast offering.
In a speech delivered to investors last Wednesday (8th June), company founder and c.e.o. Daniel Ek, said he believed audiobooks will be a “massive opportunity” for the company.
He said: “Today, the global size of the book market is estimated to be around $140bn. That’s inclusive of printed books, e-books and audiobooks, with audiobooks having only about a 6%–7% market share. But when you look at the most penetrated audiobook markets, it’s actually closer to 50% of the market. So call that an annual opportunity of $70bn for us to expand and eventually compete for. And just as we’ve done in podcasting, expect us to play to win. And, with one major player dominating the space, we believe we will expand the market, and create value for users and creators alike.”
He said that the company would use its “foundations of ubiquity, personalisation and Freemium to attract both creators and users and drive engagement”.
The company’s established Freemium model combines a free ad-supported tier and the premium subscription tier. It is likely users will be required to pay extra for individual audiobook titles, which would see a new revenue base open up for publishers.
The publishing industry has been historically wary of Spotify’s movement in the audio space, with some concerned its streaming model origins could leave authors unprotected and vulnerable to copyright infringement.
However, Michele Cobb, executive director of the Audio Publishers Association in the US, told The Bookseller publishers are “optimistically waiting for more information” about the service.
Link to the rest at The Bookseller
My experience with audio (Audible) so far indicates that it’s like everything else: your sales numbers depend entirely on your marketing muscle. I’m interested in Spotify as a potential venue to attract a fresh audience and channel them toward my content, but that may be wishful thinking.