Last year, Spotify introduced 15 hours of monthly audiobook listening for its Premium subscribers in select markets, including the U.S. The company now claims the spot of the second-largest audiobook provider, trailing behind Amazon-owned Audible. According to Spotify CEO Daniel Ek, this achievement is notable due to the strong presence of established players in the audiobook industry. During its Q4 2023 earnings call, Spotify shared insights into the consumption of audiobooks by its customers, indicating a significant interest in audiobooks from a different set of listeners compared to Audible or other platforms.
“We’re able to attract a whole new audience to audiobooks. The surprising part is the type of titles that resonate with consumers. These are not the typical titles that usually perform well,” Ek stated.
“We’re witnessing a very interesting trend in content consumption that I believe is transformative for the entire book industry,” he added, emphasizing the appeal of entertainment and cultural content, as well as the growing interest in younger and newer authors.
On Audible, subscribers have access to a limited selection of audiobooks and originals, or can opt to pay more for a monthly credit to purchase audiobooks from an extended selection of best sellers and new releases. In contrast, Spotify’s plan offers a certain number of monthly hours for audiobook listening, prompting users to explore lesser-known titles and emerging authors. The platform has observed a strong interest in audiobooks related to music, entertainment, and culture.
Spotify outlined the positive reception of its new audiobook offering from both consumers and publishers. However, it did not disclose specific engagement metrics or the impact on its financial performance, with plans to evaluate these factors over time. Notably, the company reported a significant increase in user base, now totaling 602 million, with over 236 million paid subscribers gaining access to the audiobooks service.
When asked about the future of the format, Ek hinted at further innovation by leveraging the success of Spotify’s popular Daylist personalized audio playlist. He expressed confidence in the potential for more innovative offerings not only in music but also in the realm of audiobooks and podcasts.
