Spotify Acquires Findaway: Entering the Audiobook Market
Spotify Acquires Findaway to Expand into the Audiobook Market
Spotify is strategically diversifying its audio offerings beyond music and podcasts. The company has recently completed the acquisition of Findaway, a prominent digital audiobook distributor.
Deal Details and Findaway’s Background
The financial specifics of the acquisition, finalized in the fourth quarter of 2021 following regulatory approvals, have not been publicly disclosed. Findaway, established in 2004, has consistently focused on broadening the accessibility of audiobooks to a global audience.
The company functions as a central hub, connecting audiobook creators with a vast network of reseller partners. These partners include major players such as Apple, Google, Scribd, Audible, Nook, Rakuten Kobo, Chirp, Storytel, Overdrive, and Audiobooks.com.
Findaway’s Diverse Portfolio of Brands
Findaway encompasses several distinct brands, each contributing to the audiobook ecosystem. These include:
- Findaway Voices: Facilitates connections between authors and professional narrators.
- Audioworks: Specializes in audiobook production for leading publishers.
- Playaway: Provides pre-loaded audiobook devices for libraries and educational institutions.
- Orange Sky Audio: Curates a more diverse selection of audio content.
- AudioEngine: Offers tools and technology for integrating audiobook catalogs into various platforms.
Spotify’s Plans for Integration and Growth
Spotify is integrating Findaway’s entire team of approximately 150 professionals. The company intends to leverage Findaway’s existing infrastructure and investments to accelerate its entry into the audiobook market.
The goal is to provide Spotify’s 381 million monthly active users with expanded access to audiobooks. This will initially involve utilizing Spotify’s Open Access Platform (OAP) technology.
The Open Access Platform (OAP)
OAP allows Spotify users to authenticate with their existing audiobook credentials from partners like Storytel, enabling seamless access within the Spotify app. Furthermore, OAP provides publishers with flexibility in determining how their content is sold and accessed.
Early implementations of OAP are anticipated in the coming year. Spotify believes this platform will unlock innovative ways for consumers to enjoy audiobook content.
Market Potential and Future Investments
Spotify recognizes the significant growth potential within the audiobook industry. Estimates project the market to expand from $3.3 billion in 2020 to $15 billion by 2027, justifying the investment in Findaway.
The company anticipates further expansion of the Findaway team to capitalize on emerging opportunities. Findaway will continue operating its brands and services from its Cleveland-area headquarters, maintaining existing staff and partnerships.
Previous Audiobook Initiatives
Spotify has previously demonstrated its interest in audiobooks through limited tests. These included offering classic titles narrated by celebrities, such as “Frankenstein” and “Jane Eyre.”
A partnership with Storytel was also established to allow Spotify users to access Storytel’s audiobook catalog via the OAP. It is plausible that discussions surrounding this partnership contributed to the eventual acquisition of Findaway.
Commitment to Podcasts Remains Strong
This expansion into audiobooks does not signify a diminished focus on podcasts. Spotify affirms that podcasts will continue to be a core component of its business strategy.
The acquisition is viewed as a complementary move, aimed at providing consumers with a wider range of audio content options within the Spotify ecosystem.
Acquisition Officially Closed
Update, 6/16/22, 9:40 AM ET: Spotify has officially announced the completion of the Findaway acquisition.
The company stated that Findaway’s technological infrastructure will facilitate rapid scaling of Spotify’s audiobook catalog and enhance the consumer experience. It will also create new opportunities for publishers and authors to connect with global audiences.
