It also aims to explore how to make podcasts more interactive, similar to how it added interactive features to podcasts. Spotify wouldn’t disclose its future plans for audiobooks in detail, either, but an exec did suggest the company would explore other business models, like, perhaps, subscriptions and advertising. Spotify wouldn’t discuss which policies enabled it to direct customers to its website for purchases, but claims its system is “compliant” with app store rules. Google, meanwhile, began piloting third-party billing earlier this year, with Spotify as its first customer. Apple said these apps could now use external links, if approved. It’s worth noting Spotify’s ability to avoid in-app purchases on iOS follows a policy change Apple announced back in March which focused on “reader” apps - meaning those designed to provide access to digital content like music, books, videos or magazines. Afterward, the purchased audiobook will be unlocked in the app and saved to the user’s library. Instead, it will offer previews of the book’s content for free, but users will be directed to Spotify’s website to complete their purchases, the company told reporters.
Unlike Audible, which sells subscriptions and “credits” to buy audiobooks via in-app purchases, Spotify will not be using the app stores’ own payment systems for its audiobook sales. The company also said royalty rates will be consistent with industry norms, but these vary by publisher. Plus, he added, it could work for authors who may not have found their audience in the past. “We think that a more fluid pricing model would actually allow for both an audience that has never consumed this format to start consuming it on Spotify,” explained Nir Zicherman, Spotify VP and Global Head of Audiobooks and Gated Content, in a briefing. Spotify intends this to be one of the key differentiators and competitive advantages of its service. Unlike other platforms, however, every title is individually priced instead of there being a single, consistent price across all books in the catalog.
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