US Authors Unite Over Spotify Audiobook Royalty Concerns

In October, Spotify added audiobook listening to its platform’s audio offerings for premium subscribers in the UK and Australia, which was expanded to the US in November. However, the initiative has not been universally welcomed within the book industry.

The Society of Authors, a British writers union, was the first to voice concerns over potential financial difficulties for authors in the wake of the rise of audiobook streaming, drawing parallels to the challenges faced by musicians in the music streaming industry. Now venture capitalist and author Bradley Tusk is rallying US authors who are apprehensive about streaming’s impact on their livelihood.

Tusk’s Coalition of Concerned Creators is demanding clearer information from Spotify about how authors will be compensated from their audiobook plays.

The center of the argument is this: while music tracks typically receive multiple plays, audiobooks are usually listened to just once. This unique aspect of audiobooks means that their streaming could directly impact sales. Author Kim Scott noted that Spotify’s significant under-35 user base, who are major audiobook consumers, might shift from paid audiobooks to Spotify’s free listening option, potentially diminishing authors’ revenues.

Additionally, the UK union worried over how publishers have entered into agreements with streaming platforms like Spotify without involving authors or their agents in discussions about licensing and payment conditions. Spotify, who partnered with all Big Five publishers on the deal, has responded to these concerns, stating that their book publishing partners negotiate their own licenses and find the payout model competitive with other audiobook services.

Details on the compensation structure are sparse, but Bloomberg News obtained information from Macmillan Publishers Inc., revealing that authors receive full royalty credit for each complete listen of their work, but not all publishers on Spotify are applying the same compensation terms.

This development has yet to elicit a broader response from publishers, leaving questions about the long-term impact of Spotify’s audiobook streaming on the book industry.