Spotify launches an audiobook business, taking on Amazon and Apple in its quest for profitable growth

“Spooky vibes” playlist... feat. Stephen King. Yesterday Spotify launched an audiobook service to US users. The catalog has 300K+ titles from independent authors and major publishers like Penguin Random House. But your monthly subscription isn’t enough to download that Taylor Jenkins Reid best-seller:

• Pay per download: You pay for each audiobook à la carte (prices vary). Malcolm Gladwell's "Talking to Strangers" = $21.90 + tax.
• Web-only: Inconveniently, you can't download books through the app (only on the web). Spotify has beef with Apple's in-app commissions and is avoiding the 30% "App tax."
• Made for you: Eventually Spotify wants to curate audiobooks the same way its algorithms recommend tunes based on your listening habits.

"Dune" on the I-90... Audiobooks are experiencing a growth chapter: audiobook revenues hit $1.7B last year — up 25% from 2020. Spotify believes the audiobook market has massive growth potential that could help drive profits. In July, it bought audiobook distributor Findaway for $119M. But there’s competition in this lucrative market…

• Top charts: Amazon’s Audible is by far the largest audiobook retailer (about half of US sales in April). Apple’s and Google’s pay-per-book platforms are also popular.
• Top concerns: Spotify has significantly grown subscribers and content (think: massive pod investments) but has never made an annual profit. The stock’s down 60% this year (lower than its IPO price).