Spotify and Findaway today announced that Findaway Voices, a distributor of audiobooks for independent authors, is removing the 20% distribution fee for audiobooks purchased on Spotify. The streaming service acquired digital audiobook distributor Findaway in November 2021.
Findaway says the change means Spotify now offers the highest royalties authors can earn when selling their audiobooks with Findaway Voices. With the move, Spotify is luring independent authors to its platform with the allure of increased revenue.
“We are pleased to announce that as of May, there will no longer be a 20% Findaway Voices distribution fee for audiobook royalties with Spotify,” the company wrote in a blog post. “Findaway Voices’ pricing structure for audiobook distribution is a very simple 80/20 share where you keep 80% of your royalties. Our standard 80/20 pricing remains the same for all other partners, except for Spotify, where we no longer charge a 20% distribution fee. Now if your audiobook sells on Spotify, you’ll receive all 50% of the list price you set. Authors can find a new audience on Spotify which recently announced its global monthly active listeners are now 515 million strong.
With this update, Spotify makes its platform more attractive to authors. Spotify says it is at the beginning of its journey to support independent authors, and has plans to help authors expand their reach, maximize revenue and build a strong audiobook business, noting that the news of is part of this goal today.
For the past few years, Spotify has been working to move beyond music. The streaming service has invested hundreds of millions to build its podcast business and is gearing up to take on the audiobook industry. Last September, Spotify launched audiobook support for users in the United States. The initial launch included 300,000 titles.
Like other audiobook apps, Spotify offers a standard set of features, including the ability to download titles for offline listening, rate titles, adjust playback speed, and listen on different devices.
Spotify expanded its audiobook service to the United Kingdom, Ireland, Australia and New Zealand last November and brought it to Canada in March. At the time, Spotify said its catalog has grown to 350,000 titles. The company noted that it is “seeing positive engagement,” without sharing any kind of statistic about what that might look like.