Spotify Gave Subscribers Music and Podcasts. Next: Audiobooks.

Four a long time back, Spotify’s organization was stagnating. Apple had overtaken it as the best paid out tunes company in the United States, losses were mounting and client development was slowing.

Daniel Ek, the company’s chief executive, determined that Spotify necessary to remodel from a songs support into the all the things keep for audio. The initial missing piece was podcasts, a company that has assisted strengthen advertisement profits.

Now Mr. Ek has established his sights on yet another speedily rising medium: audiobooks.

On Tuesday, Spotify claimed that it would start out offering 15 hours of audiobooks each individual thirty day period as portion of its streaming services for quality subscribers in Britain and Australia. This winter season, it will develop the providing to subscribers in the United States.

Spotify’s enlargement into books has the probable to shake up the retail landscape for audiobooks, a rapid-growing segment of publishing that has extensive been dominated by the Amazon-owned audio retailer Audible.

In Mr. Ek’s eyes, Audible’s audiobook dominance is reminiscent of Apple’s past manage over new music and podcasts. Spotify designed its company by disrupting the audio business with its month to month subscription provider and podcasts. Mr. Ek claimed in an interview that he saw the prospective to do the very same with audiobooks.

“Similar to tunes, a single of the huge complications is: How do you lessen the friction?” Mr. Ek explained of audiobooks. “How do you empower people to find incredible new audiobooks in an easy way?”

Obtaining books on Spotify, which has 220 million premium spending members globally, could support publishers achieve a large new viewers. Spotify has the instruments to propose pertinent audiobooks to podcast listeners who are interested in specific topics, and to endorse audio titles to Spotify users who have listened to a podcast showcasing an author.

Spotify will also make algorithmic suggestions to end users and share some standard demographic data with publishers, claimed David Kaefer, the head of Spotify’s audiobooks organization.

Hachette Guide Group, whose authors incorporate David Sedaris, James Patterson and Donna Tartt, is placing a lot more than 7,000 books on Spotify.

“I see this as a substantial chance to be in the firm of Joe Rogan, Taylor Swift and Beyoncé,” stated Ana Maria Alessi, the vice president and publisher of Hachette Audio.

But there’s also issue that Spotify’s plan, which involves experimentation with a new business model for book product sales, could upend the profitable and developing audiobook company. Somewhat than shell out for every audiobook a consumer begins listening to, the enterprise has proposed shelling out for the quantity of time that the buyer listens, according to a critique of a publisher’s correspondence with agents, which described the terms.

The typical audiobook lasts 7 to 10 hrs, Spotify said, which signifies subscribers can pay attention to about one particular and a 50 percent guides per month, but some well-liked textbooks can run for a lot more time. Subscribers can sample as a lot of publications as they want, and weighty consumers who want to listen to additional can pay back $10.99 for an additional 10 several hours of audiobook content material.

Kim Scott, the best-selling creator of “Radical Candor” and a former government at Google and Apple, is nervous that Spotify’s fork out-as-you-hear model could devalue the work that goes into writing a book.

The proposal that Spotify has highly developed is reminiscent of the way Apple altered the business design of songs profits, Ms. Scott said. Instead than shopping for a total album for $10, iTunes customers could acquire specific tunes for 99 cents.

“This isn’t a launch and iterate moment for the publishers it is a Pandora’s box,” said Ms. Scott, who had declined when her publisher, St. Martin’s Push, questioned to include things like her guide, “Just Do the job,” in Spotify’s streaming service. “Before I did this deal, I’d employ the service of a marketing consultant and inquire, ‘Is this heading to carry in new readers or cannibalize present product sales?’”

Quite a few publishing brokers shared very similar considerations but declined to speak on the record because of the sensitivity about ongoing negotiations. The agents be concerned that spending publishers for the quantity of time that men and women listen to a guide could take in into beneficial à la carte payments and drive other stores to pursue very similar products.

“Audio has been a main driver of growth, so getting a far more diversified market for audiobooks is a good issue,” said Christy Fletcher, a co-head of the publishing division for United Talent Agency. But she extra, “While we all want to arrive at as quite a few listeners as feasible, there is a serious danger that this usage product devalues authors’ get the job done and gets the norm for all platforms.”

Spotify has struck promotions with the 5 greatest publishers in the United States as properly as hundreds of other individuals, together with smaller sized providers and self-revealed authors. It will provide a catalog of much more than 150,000 titles to get started. Its agreements with unique publishing providers range, and some publishers are remaining more cautious than many others. Some significant businesses like HarperCollins and Penguin Random House have set their full audio catalogs in, although a further key publisher, Macmillan, is beginning with just a fraction of its audiobooks.

Mr. Ek said he experienced heard the fears from authors and publishers but considered that the 15-hour limit would safeguard the worth of audio titles while drawing in new shoppers.

“The economics are really favorable to the reserve market,” he claimed. “Everyone bought on board mainly because they see that ultimately, for significant customers, this is going to be a web favourable.”