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Spotify states that they have given audiobook publishers a total of millions of dollars in royalties.

Spotify states that they have given audiobook publishers a total of millions of dollars in royalties.

Spotify recently announced that it has paid audiobook publishers tens of millions of dollars since implementing a 15-hour audiobook listening allowance in its Premium subscription package last fall.

The business announced that according to the Bookseller trade magazine, their royalties are “100%” and they anticipate an increase in future payouts. They declined to specify the exact amount of previous payouts, but stated that the figure of “tens of millions” applies to both British pounds and US dollars.

The Society of Authors (SoA) expressed their ongoing worry about the lack of transparency regarding the deals. The organization stated that they are still waiting to see how author incomes will be impacted and if the sales are truly new or just a shift from Amazon’s market share.

During a leaked recording of an internal gathering at Audible, an employee questioned CEO Bob Carrigan about the company’s apparent fear of its competitors. Carrigan acknowledged that it was difficult to overlook the actions of Spotify. This occurred following Audible’s decision to reduce its workforce by 5%. Similarly, Spotify had also announced intentions to lay off 17% of its employees in December.

According to Spotify, those who hold the rights to audiobooks are paid based on the number of listeners and the duration of their listening. The company declined to provide additional information about their payment system. Their book publishing partners negotiate licenses with Spotify and assure them that their payout model is comparable to other audiobook platforms.

Spotify reported a significant increase in sales for audiobooks, with Brianna Wiest’s The Mountain Is You experiencing a 3,000% surge since being added to the Premium catalogue. The Society of Authors (SoA) noted that this growth is expected, as Premium catalogue access is included for those with a Spotify Premium account.

“The crucial inquiry is the impact it will have on overall audiobook sales and downloads, as well as the tangible effect on authors’ earnings. This can only be determined once royalty statements are received.”

The Society of Authors (SoA) has expressed its desire for authors to communicate with their publishers and inquire about their earnings. Specifically, the SoA requests that Spotify profits are clearly stated on royalty statements, allowing authors to understand the effect on their earnings and ensure that these downloads are properly recorded as licenses rather than sales.

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Faber & Faber and Profile Books have stated that they currently have no comment. Penguin Random House, Hachette, Simon & Schuster, and Macmillan have not replied to inquiries for comments.

Source: theguardian.com