Music streaming app Spotify has made a strategic expansion in the audiobook market with the launch of a $9.99 per month standalone audiobooks tier aimed at its free users.
This comes after the company dipped its toes into the audiobook waters late last year by offering 15 hours of free listening to its existing Premium subscribers.
The new ‘Audiobooks Access Tier,’ as it’s called, allows free users in the US to access the same 15-hour monthly limit from a library boasting over 200,000 audiobooks, Spotify said in a blog post on Friday (March 1).
This includes both popular titles and hidden gems, spanning across various genres like fiction, non-fiction, self-help, and more.
“Spotify is continuously innovating to provide the best possible offering for every kind of audio fan. Since launching Audiobooks in Premium, we’ve seen a 45% increase in free users searching for and interacting with Audiobook content each day. Now we are introducing a new plan option to give our listeners a variety of choices,” Spotify said.
“Since launching Audiobooks in Premium, we’ve seen a 45% increase in free users searching for and interacting with Audiobook content each day.”
Spotify
The move appears to be another attempt by Spotify to capture a wider audience and potentially convert free users into paying subscribers. With the free tier still offering ad-supported music and podcasts, users can now access audiobooks for a separate fee, without committing to a full Spotify Premium subscription.
“With this plan and in one app experience, listeners can continue to tune into music and podcasts on our free, ad-supported service, offering a great option for literary enthusiasts who are looking for more audiobook-specific content,” Spotify added.
However, while the standalone tier offers some flexibility, the price difference between it and a full Premium subscription is a mere $1. This may leave some potential users wondering if the full package, which includes unlimited music and podcast streaming without ads, wouldn’t be a better bargain.
During an earnings call in October, Spotify CEO Daniel Ek said price hikes are “definitely part now of the arsenal of tools we can deploy to keep growing the business, and I think you should expect us to use that when we see the appropriate dynamics.”
“With this plan and in one app experience, listeners can continue to tune into music and podcasts on our free, ad-supported service, offering a great option for literary enthusiasts who are looking for more audiobook-specific content.”
Spotify
The introduction of the standalone audiobooks tier comes a month after Spotify confirmed changes coming to its app, including the ability for users to see the pricing for locked audiobooks and purchase them directly within the app, instead of being directed to Spotify’s website to do so.
The launch also comes as the audiobook market continues to experience significant growth. According to a recent report by Research and Markets, the global audiobook market is expected to reach $13.14 billion by 2030, representing a compound annual growth rate (CAGR) of 14.3% from an estimated $5.86 billion this year.
While the initial rollout is limited to the US, it’s likely that Spotify will expand the Audiobooks Access Tier to other regions based on its performance and user reception. The success of the venture could also influence Spotify’s pricing strategy for both the standalone tier and its regular Premium subscription.
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