How bundled audiobooks have changed Spotify Premium, 2 years on
Two years since Spotify added audiobooks to Premium subscriptions, they look at how the platform has grown and listeners have responded.
Three years ago, Spotify branched into new territory by adding audiobooks to their platform. Two years ago, they added Audiobook listening as a Premium feature with 15 hours of free listening each month. Now, they’re reflecting on what it has meant for their platform.
The response has been massive, with Spotify reporting that “more than half of eligible Premium users have pressed play on an audiobook”. They’ve found that listening hours have gone up in markets across the world since the introduction of audiobooks to Spotify Premium.
Spotify’s Head of Audiobooks, Owen Smith says: “When we launched Audiobooks in Premium, our goal was to reimagine the reading experience for the next generation, making books as discoverable and dynamic as music and podcasts.
“Now, two years later, we’ve made incredible progress. We’ve introduced millions of new listeners to the format, given them choice in how to explore over 500,000 titles, and helped authors reach broader and more diverse audiences while providing incremental revenue.”
Spotify have been building on the success of audiobooks as a Premium feature by launching Audiobooks+, an add-on that unlocks additional listening hours. In the first 30 days of its launch in the U.S., consumption from Audiobooks+ users increased 18%.
Spotify are also expanding audiobooks with new features, like Follow Along. To reintroduce some of the pleasures that come with reading printed books, Follow Along is introducing timed illustrations and graphics to some books as they play.
Audiobooks on Spotify hasn’t all been plain sailing
Not everyone has been in support of Spotify’s decision to add audiobooks to their platform. The move raised questions around licensing which has caused contentions with the Mechanical Licensing Collective (MLC).
Adding audiobooks to Premium meant that Spotify’s subscriptions we reclassified as bundled service, rather than a music-first platform. This affected licensing payouts with musicians, with insider estimates that songwriters and publishers earned as much as $150 million less in the first year.
The MLC, a non-profit designated by the U.S. Copyright Office, took Spotify to court but the case was dismissed earlier this year. The MLC cannot refile the complaint, but have appealed the decision and demanded a jury trial.
The additional feature came around the same time as a price increase, leading some users who didn’t make use of the feature to feel unjustly charged more for features they don’t want. In response, Spotify launched a music-only “basic individual” tier at slightly less than the standard Premium price per month.
However, Spotify are celebrating their contribution to the industry, citing their contribution to 31% year-on-year growth for the UK’s audiobook revenue. Spotify’s Head of Audiobooks, Owen Smith, wrote: “There is still work to be done, but we’ve proven that making books easier to discover and enjoy doesn’t just serve listeners, it grows the entire publishing ecosystem.”