Spotify, the popular music streaming platform, is making a bold move to compete with Audible, the audiobook giant owned by Amazon. After introducing 15 hours of free audiobook listening to its subscription plan last year, Spotify has now launched a new “Audiobooks Access Tier” for its free users. For a monthly fee of $9.99, Spotify’s free users in the U.S. can now access its extensive collection of over 200,000 audiobook titles.
This new offering allows free Spotify users to continue enjoying music and podcasts through the ad-supported service while also having the option to pay for audiobooks without needing to purchase a Spotify subscription. Although the savings are minimal, as a Spotify Premium subscription starts at $10.99 per month for an individual plan, this move could potentially entice customers who are more interested in audiobooks than music or those who already use another app for their audiobook needs. Moreover, it may make the Premium product more appealing overall.
By introducing this audiobook access tier, Spotify is positioning itself as a competitor to Audible, which offers a different model for audiobook listening. Audible’s subscription costs $14.95 per month and provides users with one credit to purchase a title from its extensive collection, including best sellers and new releases. In contrast, Spotify’s offering allows users to pay $9.99 per month for a certain number of hours of listening. With 15 hours available, users can enjoy more than just one audiobook, potentially making it a more cost-effective option for avid listeners.
Spotify’s interest in audiobooks is evident from the increase in engagement it has witnessed since launching audiobooks for its Premium subscribers. The company reports a 45% surge in free users searching for and interacting with audiobook content on a daily basis. This indicates a growing demand for audiobooks among Spotify’s user base and highlights the potential for further growth in this market.
Despite raising prices in the U.S. from $9.99 to $10.99 per month, Spotify has experienced significant growth in its user base. In the most recent quarter, the company achieved its second-largest quarterly gain in users, surpassing 600 million monthly active users and over 236 million paid subscribers—an impressive 15% increase compared to the previous year. While Spotify has become the second-largest provider of audiobooks, trailing behind Audible, it is still too early to determine the full impact of this service on subscriber momentum and other aspects of the business.
With its new Audiobooks Access Tier, Spotify is diversifying its offerings and tapping into the ever-growing audiobook market. By providing an alternative to Audible’s subscription model, Spotify aims to capture the attention of audiobook enthusiasts who may be looking for a more flexible and affordable option. As the battle for audiobook supremacy unfolds, it will be interesting to see how Spotify’s move influences the industry and whether it can successfully challenge Audible’s dominance.
