In an effort to broaden past music, Spotify has been investing a whole lot of thousands and thousands to construct out its podcasts enterprise. Now the corporate has set its sights on one other type of audio, with at present’s acquisition of digital audiobook distributor Findaway.
Spotify declined to share the monetary phrases of the deal, which is predicted to shut within the fourth quarter of 2021, topic to regulatory evaluate and approval.
Based in 2004, Findaway’s core focus has been on bringing extra audiobooks to listeners worldwide.
It at present operates a set of manufacturers and merchandise led by its large audiobook distribution business that connects content material creators with reseller companions like Apple, Google, Scribd, Audible, Nook, Rakuten Kobo, Chirp, Storytel (a Spotify companion), Overdrive, Audiobooks.com and dozens of different international manufacturers.
Different manufacturers beneath the Findaway umbrella embrace Findaway Voices, which connects authors with skilled narrators; Audioworks, which sees the corporate producing audio for high publishers; Playaway, which brings preloaded audiobook merchandise to libraries and faculties; Orange Sky Audio, which works to carry a extra diversified audio catalog to listeners; and AudioEngine, which gives instruments and expertise that permit builders to combine a broad catalog of audiobooks into their very own platforms.
Spotify is bringing in Findaway’s full crew of round 150, it says, after which plans to construct on Findaway’s current investments within the audio business. It additionally plans to carry expanded entry to audiobooks to Spotify’s 381 million month-to-month energetic customers.
“With this acquisition, the plan is to speed up into the audiobooks area by increasing our platform,” mentioned Nir Zicherman, Spotify’s head of Audiobooks. He defined that at present, Spotify customers are inclined to go to different platforms to entry audiobooks, and it desires to allow that consumption to happen with Spotify’s app itself. Initially, that will see Spotify customers leveraging the corporate’s new Open Access Platform technology (OAP) to authenticate with current credentials to entry audiobooks from Findaway and different audiobook companions, like Storytel.
Extra broadly, nonetheless, OAP gives the flexibleness for publishers to find out how their content material is bought that works with their very own enterprise fashions, which means they could introduce quite a lot of new methods shoppers may unlock and hearken to audiobook content material on Spotify going ahead.
The primary integrations of OAP are anticipated to reach early subsequent 12 months, mentioned Spotify.
“As an business, we predict there’s huge potential and development forward for audiobooks,” Zicherman famous. “Combining Spotify and Findaway and their superb crew and their superb tech, the concept is to comprehend that future sooner than we ever may as separate firms.”
In keeping with research estimates, the audiobook business is predicted to develop from $3.3 billion as of 2020 to $15 billion by 2027, which is why Spotify believes Findaway is definitely worth the funding. The corporate additionally famous that it sees the Findaway deal as the start of its ambitions within the audiobooks area, so it might select to broaden the crew additional sooner or later.
Spotify plans to have Findaway proceed to run its varied manufacturers and providers a lot because it does at present, with the identical employees and companions, working from its Cleveland-area headquarters. This strategy is just like how Spotify dealt with its acquisition of podcast creation platform Anchor, which continued to supply distribution to different platforms — together with Spotify’s competitors.
The corporate has signaled its curiosity in audiobooks forward of at present’s announcement. In January, it began testing the format with a handful of classics, like “Frankenstein,” “Jane Eyre,” “Persuasion” and others, narrated by celebs. It had additionally beforehand supplied the primary “Harry Potter” ebook with chapters narrated by stars like Daniel Radcliffe, David Beckham and Dakota Fanning.
And in Might, it announced a partnership with audiobooks platform Storytel to permit Spotify customers to entry their audiobooks by Spotify’s app, additionally powered by OAP. (The corporate wouldn’t say if the cope with Findaway grew out of comparable partnership discussions, however that appears a possible risk.)
Right this moment’s acquisition doesn’t sign a shift away from Spotify’s dedication to podcasts so as to chase a brand new space of audio funding, we’re advised.
“Podcasts will stay a important a part of our focus as a enterprise,” mentioned Zicherman. “That is an growth into a brand new content material kind that we all know our shoppers need, and, in lots of instances, are already listening to. We need to carry that on platform to allow them to take pleasure in it on Spotify, as nicely.”
