HomeInvesting NewsSpotify Stock Plunged After It Started Selling Audiobooks, Putting It in Competition...

Spotify Stock Plunged After It Started Selling Audiobooks, Putting It in Competition With Other Tech Companies.

Published on

Spotify (NYSE:SPOT)

With the launch of its audiobook store, music streaming service Spotify stock has taken the next step toward becoming an audio destination, challenging market leaders like Amazon.com (AMZN), Apple (AAPL), and Google (GOOG) (GOOGL) in the process.

On Tuesday, the company began offering more than 300,000 titles to consumers for purchase through a new interface section. Additionally, Spotify stock began including audiobook titles in searches and suggestions produced by its employees.

The play button for audiobooks will display a lock icon to indicate that the audiobook has to be paid for before it can be played. Notably, Spotify (NYSE:SPOT) will push customers to purchase audiobooks using a mobile Web browser rather than the app itself. This will allow Spotify stock to sidestep the large revenue cut that tech platforms face from app stores.

This places Spotify’s (NYSE:SPOT) service on par with the book sales provided by the two most prominent providers of operating systems, Apple (AAPL) and Google (GOOG) (GOOGL). The acquisition of Findaway by Spotify stock in June positioned the company to compete with Audible, the market leader in audiobook subscription services (AMZN).

Spotify (NYSE:SPOT) users will soon be able to download content for offline listening, and the service will also have automated bookmarking and control over playback speed.

Nir Zicherman, who works for Spotify (NYSE:SPOT), has stated that the company has “always believed that the potential for audio is boundless,” and they have “been saying for a while now that our objective is to provide the whole package for everyone’s listening requirements.” “Audiobooks are the next to come into the picture because we see a significant untapped market. While audiobooks only represent about a 6%–7% part of the overall book industry, the category is rising by 20% year over year.”

At its Investor Day in June, Spotify (NYSE:SPOT) focused on turning around margin performance while pressing further beyond music (where it is the leader) into podcasts and launching audiobooks. CEO Daniel Ek called audiobooks “the next big thing” for the Spotify stock”an opportunity worth $70 billion every year for us to grow into and eventually compete for. You can also anticipate that we will play to win, just like we have in our podcasting.”

Meta Description

Spotify stock declined in the intraday trading session after it launched audiobook sales.

Featured Image – Megapixl © Micheleursi 

Please See Disclaimer

Latest News

Analysts Think FedEx Corp Must Slash Costs as Investor Patience Wanes

Wall Street analysts said on Friday that FedEx Corp (NYSE:FDX) Corp's new chief executive...

Monterey Private Sells Cisco Stock.

According to its most recent 13F filing with the Securities and Exchange Commission, Monterey...

General Motors Hummer EV Demand Exceeds Production Capacity

Forget about inflation, interest rates, and the possibility of a recession; people are interested...

Berkshire Stock Gets a Buy Rating From Edward Jones.

Berkshire Stock (NYSE:BRK.A) Stock analysts at Edward Jones raised Berkshire stock (NYSE:BRK.A) from a "hold"...

More like this

Royal Caribbean Stock Slides, Debt Financing, and Credit Suisse Maintains Its Positive Outlook

Royal Caribbean stock was trading at $44.41 s of 11:30 AM EDT on Friday. To...

Microsoft Corporation Plays The Real Game With Activision

Here's a proposal if Microsoft Corporation (NASDAQ: MSFT) 0.85% wants to earn real money...

Costco Wholesale Corporation Is Affected By Inflation and Increase in Membership Fee

Costco Wholesale Corporation (NASDAQ:COST) considers what some businesses are saying about inflation because the...

Roku Stock is Not Down and Out Yet.

To say Roku stock (NASDAQ:ROKU) has had a horrible year would be an understatement....

Apple Inc Is The Last Standing Tech Company

As a result of the renewed selling pressure on US stock indices, we are...

Costco Wholesale Corporation Earnings Have Been Exceeding Analyst Predictions, And Membership Fees Have Reached $1.3 Billion

Costco Wholesale Corporation's revenues for the three months ending in August surpassed $72 billion,...