Audible launches a cheaper ‘Standard’ subscription plan, challenging Spotify

Audible has launched a new $8.99 'Standard' subscription plan, undercutting its $14.95 'Premium' plan to compete with Spotify in the audiobook market. The Standard plan offers one audiobook monthly and access to curated content but removes ownership of audiobooks upon cancellation. This strategic move comes amid rising audiobook engagement on Spotify, which has increased its user base significantly in this segment.

Key Points

• Audible's new 'Standard' subscription plan costs $8.99, $6 cheaper than the current 'Premium' plan.
• The Standard plan includes one audiobook per month and unlimited listening to a curated library.
• Subscribers to the Standard plan lose access to audiobooks when they unsubscribe, unlike Premium plan users.
• The new plan also offers access to nearly 200 popular titles on the shutting Wondery+ app.
• Audible aims to boost member acquisition and retention amid growing competition from Spotify, which saw a 36% increase in audiobook listeners.
• Testing indicated strong early results in member sign-ups in markets like the UK and Australia.

Relevance

• Audible is facing strong competition as Spotify integrates audiobooks with music and podcasts, appealing to a broader audience.
• Spotify's subscription price increase may lead users to explore alternative options like Audible.
• The rise of audiobook consumption aligns with the broader trend of increased media consumption in digital formats.

Audible's introduction of the Standard subscription plan is a strategic response to competition from Spotify, aiming to capture a larger share of the audiobook market while accommodating lighter listeners and expanding its customer base.