Amazon Music is making a significant move by adding a new perk for its unlimited-plan subscribers. They can now access the extensive 1 million-plus catalog of audiobooks in the U.S. from Amazon-owned Audible. However, there is a catch - subscribers can only listen to one book per month at a time. This is a major step in expanding the service's value proposition and reaching a wider audience of casual listeners.

Redefining the Value Proposition

Amazon's VP of Audio, Twitch and Games, Steve Boom, emphasizes the importance of this addition. "This is a big step for Amazon Music Unlimited becoming an all-audio service. We look at this as fundamentally redefining the value proposition" of the service. By providing access to audiobooks, Amazon aims to offer a more diverse listening experience and retain subscribers for longer. 1: The move allows Amazon Music Unlimited customers in the U.S., U.K. and Canada to listen to one book monthly (of any length) in addition to having unlimited access to over 100 million songs in HD audio and hundreds of thousands of podcasts ad-free. This gives subscribers a comprehensive audio entertainment package. 2: Prime members can subscribe to Amazon Music Unlimited for $9.99/month, while non-Prime users pay $10.99/month. This makes it an affordable option for music lovers.

Comparison with Other Services

1: The perk of accessing one Audible audiobook per month is not available in Amazon Music Prime or the ad-supported Amazon Music Free tier. In contrast, Audible Plus ($7.95/month) includes access to thousands of audiobooks and podcasts, including originals. Audible Premium Plus ($14.95/month) adds the ability to pick one audiobook per month that you own. 2: Spotify also added an audiobook perk last year, giving Premium subscribers in the U.S. and other markets up to 15 hours of audiobook listening per month for no extra charge. Spotify Premium subs can select from among 250,000 audiobook titles out of its 375,000-plus title catalog.

Impact on Royalty Payments

1: With the bundling of Spotify's premium plans combining music and audiobooks, the streamer is paying a lower mechanical royalty rate to songwriters in the U.S. under the 2022 settlement agreement. Amazon's Boom declined to comment on how the bundling of audiobooks to Amazon Music Unlimited might change royalty payments. 2: NMPA president and CEO David Israelite said the organization does not expect Amazon Music Unlimited's addition of audiobook streaming to decrease royalty payments to songwriters. He contrasted Amazon's approach with Spotify's, stating that Amazon has engaged with the music publishing and songwriting industry in a respectful and productive way.

Expanding Audible's Reach

1: Amazon acquired Audible in 2008, and Bob Carrigan, Audible's CEO, sees the opportunity to extend Audible titles to Amazon Music subscribers as a way to captivate the next generation of listeners. Audible's lineup of original and exclusive productions includes popular titles like "Project Hail Mary" by Andy Weir and George Orwell's "1984" starring Andrew Garfield, Cynthia Erivo and Andrew Scott. 2: Earlier this year, Audible inked a deal with J.K. Rowling's Pottermore Publishing to co-produce a new audiobook series for the original seven Harry Potter novels. The new audiobooks, featuring a voice cast of more than 100 actors, are scheduled to premiere in late 2025 exclusively on Audible. This further expands Audible's offerings and attracts Harry Potter fans.