As streaming and demographic shifts deliver a second Latin explosion to the music business, audiobooks are gearing as much as observe swimsuit. In a January 2024 press launch, common subscription-based audio platform Podimo introduced a brand new strategic alliance with Mexico media hub Troop. Since launching in Mexico in 2023, Podimo has already racked up 1000’s of subscribers, however by leveraging Troop’s information of the Spanish-language audio ecosystem, they’re hoping to consolidate their presence in Latin American and US diaspora markets. And for good purpose.

Based on a latest report by Spanish digital publishing consultancy Dosdoce, demand for Spanish-language audiobooks is skyrocketing, due to booming provide. There are greater than 25,000 audiobooks in Spanish at the moment, which is 25x extra than simply 5 years in the past. Based on the report, essentially the most spectacular development in Spanish-language audio firms is going on in Latin America, and lots of of these firms produce content material that reaches the diaspora within the US. So, whichever world platform captures main Latin American cities — the streaming epicentres of the world — has a critical benefit for conquering audiobook streaming writ massive.

Latin customers drive streaming

In 2018, Spotify declared Mexico Metropolis the “streaming capital of the world”, and the town continues to be vastly impactful on world streaming traits at the moment. Cities like Santiago, Chile, and São Paulo, Brazil, additionally constantly land in Spotify’s prime cities for streaming consumption. There are three main, interrelated causes for top streaming engagement in Latin America: inhabitants density, speedy cellular adoption, and social music sharing. In Colombia, as an example, 72% of customers take heed to audio through YouTube (for music movies) and 65% pay attention through Spotify, in comparison with 49% and 35% within the US, respectively (MIDiA Q3 2023 client survey). Colombian respondents additionally add music to playlists (53%) and share music with others (29%) greater than every other market we surveyed in Q3 2023.

All that to say, the rise of Latin superstars, like Unhealthy Bunny and Karol G, was all however inevitable. With streaming being each world and algorithmic, Latin consumption traits are sure to affect world ones. Plus, in line with Pew Analysis Heart, “Hispanics made up greater than half of whole US inhabitants development from 2010 to 2022”. With Latin America having the world’s streaming hotspots and a rising viewers base within the prime marketplace for recorded music income, Latin customers have an outsized impact on the world’s streaming traits. As audiobook presence grows on world DSPs, that impact will matter increasingly more for audiobooks as properly.

World streaming will drive audiobook competitors south

Whereas audiobook apps have existed for a few years, they’ve at all times felt extra iTunes than Apple Music, extra digital commodity than client commodity. That’s to say, the enterprise mannequin has largely relied on per-unit worth versus person worth. Audible, as an example, might cost a month-to-month charge, however that charge is immediately associated to the quantity of audiobooks an individual listens to in a month. With any music streaming platform, subscriptions are unrelated to quantity — customers have a nearly infinite provide. In return, customers implicitly comply with change into the commodity (keep in mind, ARPU used to imply common income per unit, not common income per person).

Although Spotify’s latest rollout of audiobooks does include some provide limitations, the income mannequin nonetheless decouples unit-value by permitting customers to take heed to as many books as they need (offered whole listening time is below 15 hours). This brings audiobooks to the doorway of their world streaming period. Coupled with the expansion of the Spanish-language audiobook market and the extreme streaming engagement of Latin customers, Spotify is poised to make the quickest (and largest) beneficial properties within the audiobook streaming period earlier than every other main participant in Large Tech.