Amazon.com is offering subscribers to its premium music service one audiobook a month for freefollowing an offer that Spotify Technology, the largest audio streaming service, began offering its customers last year.
“This is the evolution of Amazon Music Unlimited,” said Steve Boom, Amazon’s vice president of audio, Twitch and gaming, in an interview. The new offering will make the platform the “number one audio entertainment destination par excellence.”
The features of the new offering announced Tuesday were designed to distinguish it from Audible, Amazon’s audiobook and podcast service that costs $14.95 a month.
For example, Amazon Music subscribers in the United States, Canada, and the United Kingdom can listen to an audiobook, but they can’t keep it, like Audible customers can. An Audible subscription provides one premium title per month, as well as access to additional podcasts and books. “They were designed to appeal to different segments,” Boom said.
The new offer will make the Amazon Music service, which costs $10.99 a month, more competitive than Spotify, which charges $11.99 a month. The Swedish streaming service offers 15 hours of audiobooks per month, in addition to music, podcasts and a growing catalog of video content.
According to Bob Carrigan, the service’s CEO, Audible’s membership is “literally at an all-time high,” despite growing competition from Spotify. “Our business is stronger than ever.”
After launching its audiobook offering, Spotify began classifying its service as a “bundle,” allowing the company to pay a lower royalty rate to songwriters and music publishers. A rights-raising organization is now suing the service over the change.
The National Music Publishers Association said that doesn’t expect Amazon’s new offer to reduce payments to songwriters.
“Amazon has engaged with the music writing and publishing industry in a respectful and productive way, unlike Spotify”said David Israelite, president of the organization, in an emailed comment.
Streaming platforms like Spotify will lead to a significant change in how royalties are distributed, and what implications might that have for Amazon Music’s strategy?
Guest 1: Alexa, Senior Vice President of Marketing at Amazon Music
Guest 2: Bob Carrigan, CEO of Audible
Thematic Section 1: Amazon’s New Music Service Offerings and Features
Host: How does the new offering from Amazon Music differ from their existing audiobook service, Audible? And what benefits do you think subscribers can expect from this?
Guest 1: In this new offering, we’ve focused on creating a package that caters to both music enthusiasts and those who prefer listening to audiobooks. By providing unlimited access to millions of songs and new releases every week, as well as ad-free listening, we’re giving our subscribers the freedom to explore and discover their favorite genres. Additionally, the inclusion of personalized recommendations and playlists tailored to their tastes will make it easier for them to discover new content they might enjoy.
Host: What is the goal of this move by Amazon? Is it to compete directly with Spotify or are there other considerations at play?
Guest 1: Our goal is always to provide the best possible experience for our customers. With the growing popularity of audio entertainment, we felt it was essential to offer something unique that sets us apart from other streaming services. Regarding Spotify, while they are a significant player in the market, we believe our focus on high-quality content and personalized recommendations will attract listeners looking for a more immersive experience.
Thematic Section 2: Impact on Royalties and Competition in the Industry
Host: Since Spotify introduced audiobooks to their platform, there have been concerns about royalty payments and their impact on the music industry. How do you see this affecting Amazon and your relationships with artists and music publishers?
Guest 2: At Audible, we pride ourselves on our strong relationships with the creative community, and we ensure that our royalty rates are competitive and fair. We recognize the importance of supporting artists and authors and have never wavered in our commitment to them. As for Amazon, they have always been a valued partner in the industry, and we trust that they will continue to prioritize the wellbeing of the creative community in their business decisions.
Host: Do you think the introduction of audiobooks on music
