According to reports, Spotify is planning to launch audiobooks on its platform in Sweden this fall. Spotify is one of the largest media subscription services in Sweden, and the number of households that also subscribe to an audiobook service is significant. Over 500,000 households currently pay for both an audiobook service and Spotify, according to Q1 figures from Mediavision.

Spotify is expected to launch audiobooks as part of its premium subscription in Sweden this fall. Currently, just over 1.2 million households in Sweden have an audiobook subscription. Mediavision’s latest figures show that over 500,000 of these households also pay for Spotify, which corresponds to more than 40 percent of all audiobook households. A launch would therefore mean that these households would also gain access to audiobooks through Spotify.

– The overlap between audiobook service users and Spotify subscribers is substantial. But despite this, there are over one million Spotify households that do not have an audiobook subscription. This means that the Swedish audiobook market could potentially double in terms of households, if Spotify enters the market – something that would be truly unique, comments Fredrik Liljeqvist, senior analyst at Mediavision.

Today, Spotify is one of the single largest media subscription services in Sweden, with just over 1.7 million paying households. The service also has a very low churn rate, the proportion of households planning to cancel their subscription. In contrast, the audiobook market has long been characterized by high churn, partly due to the similar offerings among services and recurring promotional deals. This gives Spotify a competitive advantage when entering the Swedish audiobook market.

– Spotify has all the prerequisites to become a significant player in the Swedish audiobook market. A launch would drastically increase accessibility and thereby also the potential for increased consumption, which would be positive for the market. But of course, it would also mean new, tough competition for existing players, concludes Liljeqvist.