The news: Spotify is adding video clips and visual elements to its audiobooks, marking the streamer’s continued efforts to extract value from its investments into the offering.
Seventeen percent of internet users listen to audiobooks, per GWI, compared with 21% who listen to podcasts.
The trend: Adding video tools to its audiobook catalog could help capitalize on its investment into the medium over the past two years. Spotify pays “hundreds of millions” to audiobook publishers on an annual basis, per Axios.
Spotify CEO Daniel Ek told investors this month that audiobooks are one of the company’s top priorities to find capital returns and that the company is focused on finding sustainable profits from those investments.
Rebranding moves: These investments contribute to Spotify’s efforts to move its brand away from being known as an audio-only application. It also added music videos and video podcasting.
Our take: Video clips often go viral on platforms such as TikTok and Instagram, and these new visual features could help bring attention to Spotify’s audiobook catalog and spotlight the individual authors on its platform.
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