Spotify launches audiobooks with a La Carte pricing

The audio giant Spotify launched its' audiobook business with more than 300,000 titles and didn't offer any discounts to its subscribers. Spotify wants to distinguish its audiobook business and not make it a part of the podcast and music business it usually does.
Spotify had already decided that they would be beginning an audiobook business.

The business has been on for a while, but introducing audiobooks under the Spotify banner would be pretty intriguing as it would not compromise quality. The Spotify app can find plenty of popular titles and individual works from authors across the spectrum.


A search engine is also on board the app, and users can search for their author or book directly. When a book for purchase is identified, the customer is immediately directed to a separate page for purchasing online. Once the payment is made, the users can either listen to the audio from the app online or go offline and listen to it. Spotify didn't offer any discounts during launch, which has become a talking point if one compares how Amazon's Audible offers good deals for subscribers.

Nir Zicherman, the VP and Global head of Audiobooks and paid content head, said that after much deliberations, it was decided to offer books at Ala carte prices. Later they might change their business model.
Zicherman says that the advantage of Spotify is that it is the audiobook retailer, helping the company decide the best price for a book. The royalty is based on how well the book sells and depends on the publishers.
For the time being, no ads will play out during audiobook narration.

Spotify podcasts beam advertisements even to premium customers. However, even audiobooks could feature advertisements in the future, and the company would need to explore how to be a part of it.

Spotify has decided not to launch any classic or exceptional audiobooks during the launch. Spotify, however, would be providing this to its customers in the future. Classics like Persuasion by Jane Austen and Mary Shelly's Frankenstein would also likely be offered in the future. Certain audiobooks would be available for people, customized to the customer's taste by algorithmically designed recommendations, depending on the user's listening habits. During the launch, only editorially created recommendations for listeners. The company hopes to be totally on board with the future audiobook scenario and wishes to provide services accordingly.


FAQs
Who is the owner of Spotify?
Swedish entrepreneur Daniel Ek is the owner. He owns 9% of the stock but has 37% voting rights.

What is the turnover of Spotify?
In the 2nd Quarter, Spotify got €2.86 billion.