Spotify is acquiring the audiobook platform Findaway in further diversification of its audio platform.
Spotify has focused on adding podcasts to its extensive music streaming catalog. Podcast exclusives are a draw to the platform, especially as the industry continues to grow. But Audible is the current dominant giant in the audiobook world. Spotify is hoping to tackle Amazon’s dominance by getting into audiobook distribution.
“It’s Spotify’s ambition to be the destination for all things audio both for listeners and creators. The acquisition of Findaway will accelerate Spotify’s presence in the audiobook space and will help us more quickly meet that ambition,” says Gustav Söderström, Spotify’s Chief Research & Development Officer.
“We’re excited to combine Findaway’s team, best-in-class technology platform, and a robust audiobook catalog with Spotify’s expertise to revolutionize the audiobook space as we did with music and podcasts.”
The audiobook industry is expected to grow from $3.3 billion now to $15.5 billion by 2027. Spotify wants to firmly establish itself to take a piece of those billions with this acquisition. Findaway works across the entire audiobook ecosystem with a platform and offerings that serve authors, publishers, and consumers.
Spotify says integrating Findaway’s technology will accelerate the company’s entry into the audiobook space. The deal is expected to close in Q4 2021 if regulators approve, but terms were not disclosed. Spotify gobbling up an audiobook company should come as no small surprise to anyone who is paying attention.
The company’s focus on podcasting has brought record engagement numbers this year – and Spotify is testing a separate podcast subscription. The company is likely to add value to the all-in-one subscription so that consumers can handle a price hike more easily. $15 for music only and $30 for ad-free podcasts and unlimited audiobooks wouldn’t be an absurd expectation from the audio company in the future.
Amazon did the same thing when it increased the price of its Prime subscription from $99 to $119 a year. Having an all-inclusive subscription service (like Apple One) makes it less likely a consumer will jump ship to try another music service, podcast service, or audiobook service.