MBW Reacts is a sequence of quick remark items from the MBW group. They’re our ‘fast take’ reactions – by means of a music biz lens – to main leisure information tales.
Spotify has lastly launched Audiobooks on its platform.
The addition of the format this week, at the moment solely within the US, comes 4 months after CEO Daniel Ek outlined SPOT’s intentions to double down on audiobooks throughout a speech at Spotify’s Investor Day.
SPOT highlighted the chance within the audiobooks market at its Investor Day, noting on the time that it’s “anticipated to develop from $3.3 billion to $15 billion by 2027”.
Spotify made its intentions to tackle the likes Amazon‘s Audible even clearer in June, when it closed the acquisition of digital audiobook distribution firm Findaway.
Beginning this week, Spotify listeners within the US will have the ability to buy and take heed to greater than 300,000 audiobook titles on the platform.
US customers will see Audiobooks alongside music and podcasts as a piece of their library, in search, and of their curated suggestions on Residence.
One of the attention-grabbing elements of the Audiobooks launch on the platform is that entry to this content material received’t be included as a part of a consumer’s Spotify subscription.
Spotify says that they’ll be displayed with a lock icon on the play button, and so they’ll should be bought individually with a view to take heed to them.
Customers might want to buy these gated audiobooks by way of an online web page, and after they return to Spotify, the guide will likely be routinely saved of their library.
The idea of a locked play button, which could be unlocked by way of an extra buy, bought us considering. May this mannequin be utilized to artist content material on Spotify?
In diversifying its personal content material providing with yet one more audio format alongside music and podcasts, Spotify could have unlocked a brand new means for artists to make more cash from their followers on its platform.
Let’s say, for instance, an artist had a bonus monitor and so they wished to cost additional for it. What if that artist and their group had entry to a characteristic in Spotify for Artists that allow them put a lock icon on that monitor, making it accessible solely to the followers who make an extra buy?
The identical might be utilized to bonus behind-the-scenes podcasts, deluxe version albums, and even unique music movies, if Spotify ever ventured into this area.
Spotify does supply different methods for artists to generate revenue on its platform apart from royalties from streams, like its Fan Help characteristic, which was beforehand referred to as Artist Fundraising Decide. It launched throughout lockdown when artists couldn’t play reveals.
In Could, Spotify stated that greater than 200,000 artists had an Artist Fundraising Decide hyperlink on the prime of their profile, with about 90% of these artists utilizing that characteristic to gather followers’ financial help straight.
Artists may also handle and promote merch on their profiles by way of Spotify’s Shopify partnership, and Spotify additionally began promoting live performance tickets on to followers final month by way of its new ‘Spotify Tickets’ website.
However permitting artists to lock particular person items of audio content material, and cost for entry to it, might be a brand new means for Spotify to let artists generate probably vital extra income from superfans.
It’s price noting right here, that final month, streaming and discovery service Audiomack rolled out its new ‘Premiere Entry‘ characteristic, which permits artists to reward their greatest followers with early entry to not-yet-officially-released music.
To unlock that entry on Audiomack, followers need to develop into ‘Supporters’ of an artist.
‘Supporters’ is a characteristic that Audiomack launched late final yr, in tandem with companions reminiscent of Warner Music Group. It permits followers on the platform to straight monetarily contribute to songs and albums from their favourite artists.
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