Why Spotify is betting big on the booming audiobooks industry

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Spotify has added audiobooks to its subscription model. Reaching millions of people, it may revolutionise the already booming audiobooks business.

In recent years, audiobooks have become a multibillion-dollar industry, with dedicated subscription services, from both big conglomerates and independent companies, driving most of this revenue. But their addition to Spotify's streaming selection marks a watershed moment.

Spotify's inclusion of audiobooks in its subscription service follows the format's continual growth in popularity and profit. According to US trade organisation Audio Publishers Association, its 28 members – including publishing giants Penguin Random House, HarperCollins and Simon & Schuster – saw, executive director of the Audio Publishers Association, based in New York, says audiobooks' integration on Spotify is a coup for the industry.

Along with altering reading habits, the smartphone has fundamentally changed consumer behaviour."People are more used to listening to informational content now, especially through the popularity of podcasts," says, professor of psychology at the University of Virginia, US, and author of The Reading Mind."And we've developed the habit of mind that we should never be bored: audiobooks have enabled us to experience literacy while commuting, exercising or doing chores.

As a result of this growing popularity, sales are becoming increasingly split between physical and audio releases, often now released simultaneously. For example, Britney Spears' memoir, The Woman In Me,in the US alone, according to publisher Gallery Books. Based on data from analytics company Circana, which tracks the publishing market, it’s estimated thatA higher volume of audiobook consumption potentially sets the stage for increased publisher and author revenue, too.

 

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