Audible launches $8.99 Standard plan to compete with Spotify

On Tuesday, Amazon-owned Audible announced the launch of a cheaper “Standard” subscription plan. The new tier is designed to offer a lower-cost entry point for listeners, contrasting directly with the platform’s existing “Premium” tier.

The two subscription tiers differ in pricing and ownership terms:

• Standard Plan ($8.99 per month): Costs $6 less than the Premium plan. It includes one audiobook per month from Audible’s catalog and unlimited listening from a curated library that includes a selection of Audible Originals. However, subscribers lose access to their consumed audiobooks if they unsubscribe.
• Premium Plan ($14.95 per month): Allows users to keep all the audiobooks they have listened to, even after canceling their subscription.

The Standard plan also includes access to nearly 200 of the most popular titles from Wondery+, a podcast service shutting down in the coming months. Audible is rolling out the new subscription tier in six initial markets: the United States, the United Kingdom, Canada, Australia, Germany, and France. The company is also testing the plan in additional markets.

The launch comes as Audible faces growing competition from Spotify. Since launching audiobooks in 2022, Spotify has bundled the format with music and podcasts as part of its own Premium subscription. The strategy has driven significant engagement. Last October, Spotify reported that the number of users listening to audiobooks rose 36% over the past year, while total audiobook listening hours increased 37%. More than half of Spotify’s 281 million premium subscribers have engaged with an audiobook. However, Spotify recently hiked the price of its monthly subscription plan for the third time in three years, potentially opening the door to competitors like Audible.

Audible’s leadership expects the cheaper tier to expand its user base. “By expanding our membership options, we’re maximizing access for lighter listeners while enabling publishers and creators to reach new audiences — a win-win that grows the entire audiobook category,” said Cynthia Chu, chief financial and growth officer at Audible. The company stated that early testing of the plan in the United Kingdom and Australia showed strong member acquisition and retention rates, driving a double-digit increase in new member sign-ups compared with previous offerings. With the expansion to the new markets, the Standard plan is projected to bring in millions of new customers.

Why it matters

Audible is adjusting its pricing strategy to defend its market share against Spotify, which has successfully bundled audiobooks into its music service and seen significant engagement growth.