Audiobook shakeup: Spotify has called podcasting a “$20 billion opportunity,” but the company’s ambitions don’t stop there. Its latest plunge has been into audiobooks, but only one year after the feature’s launch, Spotify audiobook chief Nir Zicherman announced he will leave the company in the fall.
- Audiobooks first launched on Spotify in September 2022 in the US, but its early growth and revenue trajectory hasn’t mirrored podcasting. For one, audiobooks on Spotify must be purchased, making them less accessible than podcasts and subject to Apple’s hefty cut of in-app purchases. It’s also a medium that’s rather ad-averse—no one wants to hear an ad for mattresses in the middle of “Of Mice and Men.”
- Zicherman’s focused on expanding Spotify’s audio super-app ambitions to audiobooks. He leaves at a time when Spotify’s audiobook future is unclear. In the past, Zicherman has said Spotify is toying with several models, including ad-supported audiobooks or a separate subscription service with a broad catalog.
Our take: Spotify is one of the clear winners of its generation of digital services, maintaining strong user growth and resilient ad revenues. But with growth starting to taper off, we’re seeing the company experiment and break down self-made barriers that stand in the way of user acquisition.