Spotify waives royalties for audiobooks authors
Spotify announced there will be no 20% Findaway Voices distribution fee
Spotify ownership audiobooks seller Findaway will no longer take a 20 percent cut of royalties for titles sold on its DIY Voices platform.
In a company blog post, Findaway said that it would “pass on cost-saving efficiencies” from its integration with the streaming service.
Last summer, Spotify finalised its $123 million purchase of Findaway in a bid to cement its position in the audiobooks business.
While it’s free for authors to upload their audiobooks onto Findaway’s Voices platform, the company normally uses an 80/20 pricing structure.
But that fee comes after sales platforms take their own 50 percent cut on the list price.
So under the old revenue split, an author who sold a $10 audiobook would have to give $5 to Spotify and $1 to Findaway. But moving forward, that same author will no longer have to pay the $1 distribution fee to Findaway when a sale is made through Spotify.
The move by Spotify and Findaway is likely a bid to draw more indie authors from Audible, which is currently its biggest competitor. But Spotify’s audiobooks business – which it launched last fall – still has a long way to go.
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