Did Mercury retrograde specifically target the Audiobook industry in Q1 this year?

Between Spotify’s bewildering attempted rights grab and author Brandon Sanderson swinging his influence like Excalibur over Audible, the news around Audiobooks in 2024 is wild!

Here’s what’s been happening, and what authors need to know to make sure they are getting the most out of their Audiobook investment and rights.

Spotify’s Thwarted Audiobook Rights Grab

Spotify positioned itself as a would-be competitor to Audible over the last 2 years, launching a monthly subscription service and retail audiobook sales on their platform. Spotify also purchased FindawayVoices, a long-time Audiobook distribution company that had been growing an Audiobook self-publishing and production platform for authors as a competitor to Audible’s ACX platform.

Currently, the only way for independent authors to have their Audiobook distributed on Spotify is to use Findaway.

On February 15, 2024, Spotify changed their terms of use on Findaway, requiring authors to grant broad rights to Spotify for translating, modifying, and creating derivative works from submitted audiobooks. This sparked immediate concerns among authors and publishing professionals who were worried this was encroaching on their Audiobook rights. The Authors Guild, among other industry watchdog groups, warned its members not to accept the new terms.

In fact, the response was so overwhelming that Spotify responded immediately. The new terms of use, released a day later on February 16, removed the overly broad rights and clarified that the rights granted were solely for the purpose of improving discoverability, anti-piracy, and anti-fraud measures – not for creating new content or AI voice training without permission.

For more on the specific changes to the Audiobook terms at Spotify, read the Authors Guild’s response to these changes here.

Is it “safe” to publish your Audiobooks to Spotify at this point? I would say yes, given the updated Terms of Use. At the same time, we here at Twin Flames Studios will be keeping an eye on the situation and gathering industry news as always to make sure that authors are getting the best options for their Audiobooks.

Higher Audiobook Royalties Coming Soon from Audible

Brandon Sanderson, the esteemed science fiction and fantasy writer with more than 40 million book sales, is largely to thank for Audible’s impending new royalty structure, which is said to offer better terms for Audiobooks from independent authors. 

This change comes after Sanderson's proactive discussions with Audible. Sanderson, who previously withheld the Audiobook versions of his Secret Projects series from Audible to encourage industry reform, will soon release them on the platform, recognizing Audible's steps towards improvement.

Sanderson noted that his desire for a more transparent and equitable system emerged from Audible’s ambiguous royalty and audio sales structure. As a result of Audible’s “credit” system, authors are often unsure of how their royalties are being accounted for.

Another point of contention Sanderson had with Audible was the percentage of sales authors receive in royalties. He explained that “While video game creators and musicians get 70–80% of a sale of their products… Audible is paying as low as 25%–with the high end being instead 40%.” 

As a result of new negotiations with Audible through Sanderson’s team, minimum royalty rates for Audiobooks are increasing and the company is going to be more transparent about authors’ pay as it relates to “credits” spent by users. Additional changes include authors being paid royalties monthly instead of quarterly and the inclusion of additional documentation of how royalty amounts are calculated.

While the new structure doesn't fully meet all his expectations, it represents a significant step forward in the right direction for Audiobooks. My team and I at Twin Flames Studios will be the first in line to announce to our Audiobook clients that their royalties are increasing as soon as Audible makes these changes.

Read and watch more Frequently Asked Questions about Audiobooks and benefit from our expertise, or Contact Us for more information and forthright advice about producing, distributing, and profiting from Audiobooks.

What most surprised you, or what do you still want to know? Let us know your thoughts below!

About Tina Dietz:

Tina Dietz is an award-winning and internationally acclaimed speaker, audiobook publisher, podcast producer, and vocal leadership expert whose work and shows have been featured on media outlets including ABC, NBC, CBS, The Wall Street Journal and Chicago Tribune, Inc.com, and Forbes. She’s been named one of the top podcasters for entrepreneurs by INC.com, and Tina’s company, Twin Flames Studios, re-imagines thought leadership through podcasting and audiobooks for experts, executives, and founders.