Will Spotify Really Stream Audiobooks?

Spotify remains one of the world’s leading audio streaming platforms with around 40% of the current market share. Its huge music content, podcasts and the like is still one of the most common choices among users.

If you think about and analyze Spotify’s business strategy, it looks like the company is not going to slow down anytime soon. Spotify has announced the acquisition of the audiobook platform as the next expansion step.

This platform is called Findaway. This is a company that is engaged in various activities related to audiobooks. It produces and distributes this type of content while maintaining close relationships with publishers and authors who want their work to be published in some way.

With this, Spotify hopes to capture a growing share of the audiobook market. Analysts predict that the audiobook market will grow to $15 billion by 2027 (now valued at about $3.3 billion).

Analysts record an annual growth of the audiobook market by about 30 percent. By the standards of the United States of America, where the calculations were made, this is a huge figure. This state of affairs promises large and stable profits for companies that enter this market over the coming years.

The Swedish music streaming company intends to add this new product to its catalog as early as 2022, not only publishing Findaway content, but also offering audiobook creation services.

Of course, the purpose of this acquisition is to accelerate Spotify’s entry into the audiobook market. Thus, it will be possible to send almost all the audio content of interest to the user to a single platform, keeping subscribers longer.

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As a result, Spotify will become a direct competitor to Amazon, which today positions itself as the leader in the audiobook market. Considering Spotify’s huge popularity around the world and its whopping 456 million monthly active supporters, achieving these goals seems quite realistic.

It’s not very difficult to see who Spotify will compete with with the Findaway acquisition. So far, the audiobook platform has always competed with Amazon’s Audible service, as well as Google Audiobooks and Scribd. As the market is booming, this fight could become very interesting in the coming years.

Spotify is back in the black in 2021, posting $2.3 million in net income and $2.9 billion in total revenue. Additionally, according to the latest data, the streaming platform has recorded an exponential number of subscribers of 195 million on its paid plan.

On the other hand, it’s worth noting that Amazon is still the leader in the audiobook business. For example, in 2021, Audible had a market share of 46.34%, according to the Grand View Research website. This dominance still persists, even as competitors emerge from all directions.

In any case, the Findaway acquisition should be completed by the end of 2022. We can only wait to see how this fight unfolds and wait for an invitation from the Swedish music streaming platform into the amazing and fascinating world of audiobooks.

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