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Spotify announced plans to purchase Findaway, an audiobook distribution and services company, for an undisclosed amount. It operates several businesses including audiobook distribution to different platforms and audiobook creation services under its business Findaway Voices. This company matches authors with narrators and could be a valuable source of new revenue for Spotify.
This makes Spotify both an audiobook publisher and commercial bookseller, which is a distinction the company was reluctant to accept for its podcasting efforts.
In a conversation with The Verge, Nir Zicherman from Spotify's head of audiobooks, said that "With this acquisition we're going be able to accelerate adding an audiobook catalogue onto the platform so users can effectively get all the audio content they want all on the one platform."
Zicherman said that the team is focused on "innovation" to make audiobooks more enjoyable and "democratization," so more people can create and distribute audiobooks. It is also interested in audiobook discovery, which it has always been focused on with podcasts and music.
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Zicherman declined details on Spotify's exclusives, but he did praise the company for its work with creators. He says that Voices allows creators to distribute widely. This is an important feature of the offering that we intend to keep and continue supporting, as we believe it's part and parcel of what makes Spotify so powerful from a creator perspective.
Zicherman says that the Spotify core app will gain more audiobooks when Open Access partnerships start distributing content there. (Storytel is a major audiobook streaming service and is the first partner. These aren't the only moves to show Spotify's interest, however. In January, it partnered with celebrities and YouTubers to distribute classic books such as Frankenstein. It also partnered with J.K. Rowling's Wizarding World for Harry Potter and the Philosopher's Stone audiobooks.
The acquisition will allow Spotify to continue making money in the audio industry, but it is most important. Spotify gets a share of the royalties earned by authors who have Findaway books. The platform will also take a cut of any revenue that is earned when a book is purchased. (A spokesperson for the company declined to comment on the company's monetization plans. Spotify may launch new subscription tiers similar to Audible to account for audiobook reading. Spotify will have to pay royalties, just like it does for music content, to audiobook authors and distributors.
Correction 11/11 at 4:5 ET: The original story stated that Spotify would make money if people stream an audiobook. Instead, it should have stated when they purchase one. We regret this error and have rectified it.
