Spotify enters audiobook market as competition heats up with Storytel

In a significant development within the digital content industry, Spotify has announced the introduction of a new feature to its premium service, allowing subscribers access to over 200,000 audiobooks. This move, unveiled last week, marks Spotify’s latest venture into diversifying its offerings beyond music and podcasts, aiming to capture the growing audience for audiobooks.

Coinciding with Spotify’s announcement, competitor Storytel has launched an enticing offer of “50 percent off for the rest of your life” on its new Storytel Premium subscription. This competitive pricing strategy reflects the increasing interest in audiobooks, particularly in the Dutch market.

The rising popularity of audiobooks is evident, with research by KVB Boekwerk indicating that one in five Dutch individuals now listens to audiobooks, a figure that has nearly tripled between 2016 and 2024. This trend is especially prevalent among people from higher income brackets and younger demographics, particularly those under 35 years old. Martijn David from the Group of General Publishers notes that this growth trend is not surprising and aligns with the digital consumption habits of younger audiences.

David further comments on the advantages of audiobooks, emphasising their accessibility and convenience. “In the past, people listened to the radio in the car; now they play an audiobook,” he explained. Despite concerns that audiobooks might detract from traditional reading, David reassures that they still offer valuable storytelling experiences.

The economic model of audiobooks bears similarity to gym memberships, where profitability leans on regular usage. However, the shared insight from experts suggests that while audiobooks may appear more affordable than their physical counterparts, their economic value hinges on consistent consumption.

From the perspective of the CPNB (Collective Propaganda of the Dutch Book), represented by Job Jan Altena, this digital shift is welcomed. The organisation supports the development of varied book formats, whether physical, electronic, or auditory, as long as such diversifications continue to boost sales or lending.

The competitive landscape has further intensified with Spotify’s entry, which marks its first audiobook subscription service in non-English-speaking markets. This expansion involves a diverse catalog, including works from renowned French and Dutch authors. This strategic manoeuvre aims to broaden audience reach while fostering growth within the literary sector.

In tandem, Storytel interprets the timing of Spotify’s entry as a “happy coincidence.” The company, running its promotional campaign since October, hopes to revitalise listener engagement, particularly among younger demographics who often abandon their subscriptions post-vacation.

Storytel’s spokesperson underlines their goal to instil audiobook listening as a habitual practice among users. Their promotion seeks to counteract a slowdown in market growth, a challenge also shared by other audiobook services.

Amidst these developments, concerns have been raised regarding planned government increases in VAT rates on all books. The publishing sector, already facing rising costs, fears the resultant impact on book pricing.

Overall, the competitive moves by Spotify and Storytel reflect a dynamic shift in the audiobook market, particularly within the Netherlands. This evolution in the digital content landscape underscores the growing appetite for varied forms of storytelling, adapting to the changing preferences and lifestyles of contemporary consumers.

Source: Noah Wire Services