Amazon-owned online audiobook and podcast service Audible is rolling out a new royalty model that will enable creators to monetize more types of content.
The model will also allow listeners to access more storytelling, the company said in a Thursday (July 11) blog post on its website.
In the new model, titles in all Audible’s membership offerings can earn royalties, according to the post. That means small publishers and independent authors will be able to earn across all membership listening activity; titles in the company’s all-you-can-listen offering, Audible Plus, can generate royalty payments; and publishers and creators can monetize and promote content in new ways.
In addition, the new business model will provide additional insights to publishers and creators, the post said. Providers who sign up for the new model will get monthly statements and royalty payments that support timely decision-making, as well as additional insights about the impact of listening on their earnings.
To calculate the new royalty model, Audible takes a member’s plan value, adds the value of any additional credits used, and then divides that value among the titles the member listened to during the month, per the post. That figure is then multiplied by the contractual royalty rate to determine the creator’s royalty payment, per the post.
“Audible is a home for creators, and we are focused on both existing and emerging voices — working hand in hand with them to make sure their content is reaching the right audiences,” Rachel Ghiazza, chief content officer at Audible, said in the release.
This new royalty model arrives at a time when competitive offerings from companies like Spotify and Everand are directly challenging established leaders like Audible, which has long dominated the audiobook market with its subscription-based service.
Both Spotify and Everand present compelling alternatives with their extensive libraries and integrated platform experiences, PYMNTS reported in March.
In November, Spotify announced the addition of more than 200,000 audiobooks for its Premium subscribers, with 15 hours of listening included in the subscription per month before consumers have to start paying extra for the content.
Spotify said at the time that it found that 72% of Generation Z and millennial consumers listen to audiobooks.
The post Audible Says New Royalty Model Monetizes More Content appeared first on PYMNTS.com.
