Spotify acquires Findaway to ‘revolutionize the audiobook space’

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Spotify has entered right into a definitive settlement to purchase audiobook distribution firm Findaway.

The phrases of the transaction weren’t disclosed.

According to a media assertion, Spotify and Findaway “will accelerate” the music streaming firm’s entry into the “rapidly growing audiobooks industry”, presently dominated by the likes of Audible, which was acquired by Amazon for $300 million in 2018.

Spotify says that Findaway’s expertise infrastructure will enable it to “quickly scale its audiobook catalog”.

Additionally, Spotify claims that the acquisition positions it  to “revolutionize” the audiobooks area “in the same way as music and podcasts”.

Spotify, whose international Premium Subscriber base grew to 172 million in the three months ended September 30, has invested closely in podcasts over the previous couple of years in the type of authentic content material spending, unique offers, and firm acquisitions.

Spotify counted 3.2 million podcasts on its platform at the finish of Q3, in accordance to its Q3 monetary report, which was up from 2.9m at the finish of the prior quarter (Q2).

In August, Spotify rolled out paid podcast subscriptions to US podcast creators and says that it plans to increase the monetisation instrument globally.

Speaking on the agency’s Q3 earnings name, CEO Daniel Ek famous that “Excitement from advertisers for the podcast industry has increased substantially over the last year, and we’re ahead of our plans for podcast monetization.” Ek added that Spotify is on track to surpass €1 billion in advert income in 2021.

Findaway will keep its headquarters in Solon, Ohio and can proceed to be led by Findaway Founder & CEO Mitch Kroll, who will report to Nir Zicherman, Head of Audiobooks at Spotify.

The transaction is predicted to shut in the fourth quarter of 2021 and is topic to regulatory evaluate and approval.

“The acquisition of Findaway will accelerate Spotify’s presence in the audiobook space and will help us more quickly meet that ambition.”

Gustav Söderström

Gustav Söderström, Spotify’s Chief Research & Development Officer, stated: “It is Spotify’s ambition to be the destination for all things audio both for listeners and creators.

“The acquisition of Findaway will accelerate Spotify’s presence in the audiobook space and will help us more quickly meet that ambition.

“We’re excited to combine Findaway’s team, best in class technology platform, and robust audiobook catalog, with Spotify’s expertise to revolutionize the audiobook space as we did with music and podcasts.”

“Together with Spotify we have the opportunity to innovate and democratize the audiobook ecosystem.”

Mitch Kroll, Findaway

Findaway Founder & CEO Mitch Kroll added: “Together with Spotify we have the opportunity to innovate and democratize the audiobook ecosystem.

“We founded Findaway with the recognition of the power of the spoken word through audiobooks and the unique opportunity to empower storytellers and connect them with listeners.

“We look forward to combining our leading technology tools and world-class team with the reach of Spotify’s platform to provide an enhanced audio experience for creators, publishers and listeners around the world.”

 Music Business Worldwide

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