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Spotify Tries To Win Indie Authors By Cutting Audiobook Fees - Slashdot
source link: https://news.slashdot.org/story/23/05/01/2131211/spotify-tries-to-win-indie-authors-by-cutting-audiobook-fees
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Spotify Tries To Win Indie Authors By Cutting Audiobook Fees
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In an effort to appeal to indie authors, Spotify's Findaway audiobook seller "will no longer take a 20 percent cut of royalties for titles sold on its DIY Voices platform -- so long as the sales are made on Spotify," reports The Verge. From the report: In a company blog post published on Monday, Findaway said that it would "pass on cost-saving efficiencies" from its integration with the streaming service. While it's free for authors to upload their audiobooks onto Findaway's Voices platform, the company normally uses an 80/20 pricing structure -- where Findaway takes a 20 percent fee on all royalties earned. But that fee comes after sales platforms take their own 50 percent cut on the list price. So under the old revenue split, an author who sold a $10 audiobook would have to give $5 to Spotify and $1 to Findaway. But moving forward, that same author will no longer have to pay the $1 distribution fee to Findaway when a sale is made through Spotify.
The margins on audiobooks are exceptionally high, much to the chagrin of the authors. For example, Audible takes 75 percent of retail sales (though it'll only take 60 percent with an exclusivity contract). Many authors share royalties with their narrators and have to pay production fees -- meaning they get an even smaller share of royalties. The move by Spotify and Findaway is likely a bid to draw more indie authors from Audible, which is currently its biggest competitor. But Spotify's audiobooks business -- which it launched last fall -- still has a long way to go. Unlike music or podcasts, most audiobooks on Spotify must be purchased individually, and sales are restricted to its web version. Even CEO Daniel Ek admitted that the current process of buying an audiobook through Spotify is "pretty horrible." "We at Spotify are just at the beginning of our journey supporting independent authors -- we have many plans for how to help authors expand their reach, maximize revenue, and ultimately build a strong audiobooks business," said Audiobook's communications chief, Laura Pezzini.
The margins on audiobooks are exceptionally high, much to the chagrin of the authors. For example, Audible takes 75 percent of retail sales (though it'll only take 60 percent with an exclusivity contract). Many authors share royalties with their narrators and have to pay production fees -- meaning they get an even smaller share of royalties. The move by Spotify and Findaway is likely a bid to draw more indie authors from Audible, which is currently its biggest competitor. But Spotify's audiobooks business -- which it launched last fall -- still has a long way to go. Unlike music or podcasts, most audiobooks on Spotify must be purchased individually, and sales are restricted to its web version. Even CEO Daniel Ek admitted that the current process of buying an audiobook through Spotify is "pretty horrible." "We at Spotify are just at the beginning of our journey supporting independent authors -- we have many plans for how to help authors expand their reach, maximize revenue, and ultimately build a strong audiobooks business," said Audiobook's communications chief, Laura Pezzini.
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