Spotify, the streaming giant, has announced its expansion into the audiobooks space with a focus on Canada. This move follows its initial foray into the U.S., where it already caters to English-speaking audiences. With over 350,000 titles now available, Spotify aims to tap into a growing market while addressing some technical hurdles.
How Spotify Approach Works
Spotify’s audiobooks service is currently accessible in both English and French in Canada, with an expanding catalog of approximately 350,000 titles. The company has been working on its recommendations through the updated Spotify app, inspired by TikTok-style feeds that provide previews of audio content.
Challenges and Concerns
One of the significant hurdles Spotify faced was navigating Apple’s App Store policies regarding in-app purchases. To avoid being accused of commission fraud, Spotify opted to inform users that they couldn’t purchase audiobooks directly through the app. Instead, a green "Got It" button appears after informing users they can’t buy books via the app.
This approach has been met with mixed reactions. While it ensures compliance with Apple’s rules, it also complicates the user experience by forcing an extra step before making a purchase. According to Spotify, this could potentially reduce sales as fewer steps are required for in-app purchases through the web.
Market Potential and Strategy
Spotify aims to leverage its growing audiobooks market strategically. With a 6-7% share of the broader book market and an annual growth rate of 20%, this niche presents significant opportunities. By adding audiobooks, Spotify gains more data points to refine its recommendation engine beyond music alone.
The company has also been working on improving its recommendations through a revamped app featuring TikTok-style feeds that include previews of audio content—specifically audiobook clips. However, these changes are not yet available across all platforms as of now.
Expansion in Canada
Spotify’s expansion into Canada is particularly notable because it will allow English and French-speaking users to access the service simultaneously. While the majority of the company’s catalog remains in English, there has already been a selection of titles available in other languages across its supported markets (including the U.S., U.K., Ireland, Australia, and New Zealand). This expansion comes after "slightly" expanding the number of French titles in France.
Conclusion
Spotify’s audiobooks service is still in its early stages but presents promising opportunities for growth. The company’s strategy to expand into Canada alongside other markets could help solidify its position in the competitive audiobooks market while addressing some technical challenges. However, the complexity introduced by Apple’s App Store policies may have unintended consequences for user experience and sales figures.
