Spotify has introduced a new “Audiobooks Access Tier” for its free users, offering a standalone audiobooks service for $9.99 per month. This new option allows free users to access Spotify’s extensive collection of over 200,000 titles, enabling them to stream up to 15 hours of audiobooks each month.
Key Takeaway
Spotify’s new standalone audiobooks service for free users at $9.99 per month provides an alternative to Audible’s subscription model, offering 15 hours of monthly listening and aiming to enhance user engagement and upsell opportunities.
Competing with Audible
By offering this standalone audiobooks service, Spotify aims to compete with Audible, the popular audiobook platform owned by Amazon. While Audible’s subscription costs $14.95 per month and provides 1 credit to purchase a title from its extensive collection, Spotify’s $9.99 per month plan offers 15 hours of listening time, which is often more generous than a single audiobook.
Upselling and User Engagement
Spotify’s move not only provides an alternative for audiobook enthusiasts but also serves as an upselling opportunity for those less interested in its music service. The company has observed a 45% increase in free users searching for and interacting with audiobook content daily since the introduction of audiobooks for Premium subscribers.
Impact on Subscriber Base
Despite the slight increase in the U.S. subscription price from $9.99 to $10.99 per month, Spotify has experienced significant growth, reaching over 600 million monthly active users and over 236 million paid subscribers. While it has become the second-largest provider of audiobooks, the company is still evaluating the impact of this service on its subscriber momentum and overall business.
