Spotify’s audiobook vertical brings a new format to the masses

Spotify successfully integrated podcasts into its platform and has the potential to do the same for audiobooks. In September 2022, Spotify launched its official audiobook vertical with over 300,000 titles available for à-la-carte purchasing. While the Apple App Store commission has disrupted this strategy, the à-la-carte model differentiates Spotify from other platforms and brings welcome experimentation to the format. The majority of audiobook platforms, including the original audio disrupter, Audible, are subscription based, although members still purchase individual titles at a reduced price. However, without an extra subscription, Spotify users, especially those who have never listened to an audiobook, can explore the content before actually purchasing one. 

Spotify may also benefit from the blurring lines between podcasts and audiobooks. While Spotify only recently debuted its official audiobook vertical, audiobooks have been available on the platform for some time. These unofficial uploads break down audiobooks by chapters in either podcasts or playlists rather than a standard, long-form audiobook. This indicates that listeners may already be interpreting audiobooks as podcasts and vice versa.  Spotify even released a “Bookcast” by Dolly Parton and James Patterson, which purposefully blurs the lines between the formats. This blurring can help grow both formats and familiarise new listeners with audio entertainment. Spotify can capitalise on this by promoting audiobook content to podcast listeners and developing original content that combines them. As Spotify continues to rebrand as a platform for all audio, it is bringing new types of content to a younger generation of listeners, which is a key growth factor for audio entertainment. Whereas podcast- and audiobook-only platforms, like Audible, separate audio audiences away from the mass listener base, Spotify is bringing audio content to the masses. 

Spotify’s challenge will be determining how the à-la-carte strategy will work with the app store commission. For now, Spotify developed a web page where users can buy audiobooks rather than in-app. However, users may find this process inefficient and, as a result, refuse to explore the content. Spotify will have to find a way to make audiobooks most accessible for users while adhering to app store rules.