Late last year, Spotify introduced a new perk for its Premium subscribers in select markets, including the US—15 hours of monthly audiobook listening. Remarkably, this service now stands as the second-largest provider of audiobooks, trailing only behind Amazon-owned Audible, a fact emphasized by Spotify CEO Daniel Ek during the company’s fourth-quarter 2023 earnings call.
Diverse Audiobook Consumption Trends
Ek expressed intrigue at the service’s ability to reach a new audience and highlighted the surprising success of non-traditional book genres. The emphasis shifted from bestsellers to a more eclectic mix, characterized by a focus on fun, culture, and the engagement of young, emerging authors. Spotify’s model, offering a fixed number of hours per month for audiobook consumption, encourages users to explore lesser-known titles and those by upcoming authors.
Publisher and Consumer Responses
During the earnings call, Spotify shared impressions of how both consumers and publishers are adapting to this novel format. Publishers and creators welcomed the innovation, although some raised concerns about transparent remuneration practices. Investors probed Spotify about the impact on earnings, but the company emphasized it’s too early to provide detailed insights, adds NIX Solutions.
Future Prospects and Innovative Trends
Spotify hinted at future developments by spotlighting the success of its popular Daylist feature, experiencing a surge in searches. Ek expressed pride in the team and teased forthcoming innovations on both the music and audiobook fronts.