Swedens Authors Union welcomes Spotifys entry into the Swedish audiobook market but warns of an unsustainable royalty model for authors. Publishers view the launch positively despite increased competition. Chair Anja Gatu draws lessons from streaming music.
Spotify is now challenging the dominance of Storytel and BookBeat in the Swedish audiobook market, a development welcomed by Swedens Authors Union. The union, however, levels sharp criticism at the companys choice of royalty model, described as long-criticized and unsustainable. Chair Anja Gatu expresses concern over the royalty levels: We have seen how the streaming economy has worked in other areas. Its the tech companies that have profited from it, not the content creators. She notes that musicians have not benefited from Spotifys music expansion and that the company has yet to disclose details on audiobook royalties.
On Storytel, unlimited access to literature costs 229 kronor per month, and Gatu warns that price pressure will hit authors: On Storytel you get access to all literature for 229 kr a month and then you understand that someone has to pay for it to be that cheap, and its the authors. The union wishes for competition on terms other than pure price cuts.
Publishers are more optimistic. Hakan Rudels, CEO of Bonnier Books, sees the launch as a bit sweaty for their streaming service BookBeat but positive for publishers and authors: Its two thoughts at once. On one hand a bit sweaty for our streaming operations. But on the other hand its very positive for our publishers and authors. He emphasizes the importance of earning authors trust daily.
Storytels commercial director Claus Wamsler-Nielsen hopes Spotify will grow the market, as in the Netherlands where the launch a year ago led to one of Storytels best years. We actually had one of our best years in the Netherlands on Storytel, he says. Effects are expected to become clear within three months. Helena Gustafsson, content director at Storytel, stresses that its important for authors to reach audiences via all platforms. The question of room for more services like Nextory remains an exciting challenge in Sweden and Finland.