(Reuters) – Spotify announced on Tuesday that it is expanding its free access to audiobooks for premium users in the UK and Australia. The feature will be extended to the United States later this year. The move is part of Spotify’s strategy to diversify its revenue streams beyond music streaming services, with podcasts and audiobooks being the company’s primary focus. With the launch of its audiobook service in the United States last year, Spotify directly challenged Amazon’s Audible.
Spotify, which aims to achieve one billion users by 2030 and generate $100 billion in annual revenue, had previously promised high-profit returns from its expansion into podcasts and audiobooks. In July, the company raised prices for its premium plans in various countries, including the United States and the UK.
The company stated that premium subscribers will now have 15 hours of free access to a catalog of over 150,000 audiobooks. Additional 10-hour allocations can be purchased as top-ups. To take advantage of this feature, users must have a premium individual account or be the plan manager for their Family or Duo account.
The expansion of the audiobook service is expected to attract a larger and more diverse user base, as well as increase engagement and monetization opportunities for Spotify. By offering a wide range of audiobooks, the company aims to provide a comprehensive entertainment experience for its subscribers.
Spotify’s foray into audiobooks marks its commitment to becoming a leading platform for all forms of audio content. In addition to music streaming, the company has been investing heavily in podcasting, signing exclusive deals with popular podcasters and acquiring podcast networks. By integrating audiobooks into its platform, Spotify hopes to further differentiate itself from competitors and become the go-to destination for all types of audio entertainment.
The feature expansion to the United States later this year is highly anticipated, as it will allow Spotify to directly compete with Audible, which currently dominates the audiobook market in the country.
Spotify’s move into audiobooks reflects the growing popularity and demand for audio content beyond just music. With the success of podcasting and the increasing consumer interest in audiobooks, Spotify’s decision to offer free access to audiobooks demonstrates its commitment to meeting evolving user preferences and capturing new sources of revenue.
Reported by Samrhitha Arunasalam in Bengaluru; Edited by Shinjini Ganguli
Credit: The Star : Tech Feed
