File: A man checks his smartphone whilst standing amongst illuminated screens bearing the Spotify Technology SA logo in this arranged photograph in London, UK, on Tuesday, June 26, 2018. (Photo by Chris Ratcliffe/Bloomberg)
Spotify Technology SA’s push into audiobooks appears to be catching on, with more people using the service and publishers giving the streaming company credit for recent growth.
The number of people listening to an audiobook on Spotify rose 36% in the past year, while the number of hours consumed grew 37%, according to the company, which added the products to its paid subscriptions exactly two years ago.
Spotify launched the audiobook program to complement its bedrock music and podcast businesses and give customers more reason to stay with the service. Unlike some competitors, the company gives subscribers 15 hours a month of listening rather than a credit that can be redeemed for a book. That means audiences can sample various books, so long as they don’t exceed their allotment.
The majority of people listening are under age 35, according to the company. Over the past two years, Spotify has tripled its catalog to 500,000 titles in the 14 markets that offer the audiobook program. The company told publishers and authors it would expand the potential audience for audiobooks.
"I think we’re succeeding with what we promised the industry on day one,” Owen Smith, head of audiobooks at Spotify, said in an interview.
In June, the Audio Publishers Association said US audiobook sales reached $2.22 billion in 2024, growing 13% over the prior year. Some publishers have cited Spotify for recent growth, including Bloomsbury Publishing Plc, HarperCollins and Lagardere SA.
Troy Juliar, chief content officer at RBmedia, an audiobook publisher, said revenue from Spotify has been "largely incremental,” stemming from casual listeners. Spotify’s entrance into the business has contributed to its growth, though he noted other factors play a role, too, including screen fatigue.
Short stories and children’s books have done especially well on Spotify, Smith said, citing the popularity of sampling. If listeners blow past their 15 hours, they can pay for additional time. Older titles also outperform new bestsellers - seven out of 10 of the service’s top titles are "backlist,” or have been on the market for at least a year, Smith said.
For this reason, publishers and agents initially feared frequent listeners might allow their pricier Audible subscriptions to lapse and substitute them with Spotify. This hasn’t panned out, according to Juliar. Instead, it seems Spotify is introducing audiobooks to a new, younger crowd.
