Amazon Music Expands Service with Monthly Audiobook as Streaming Wars Heat Up — Will Royalty Changes Follow?
Amazon Music Unlimited has introduced a new perk for subscribers in the U.S., Canada, and U.K. - one free audiobook per month from Audible's vast library. This integration comes at no additional cost for both Individual subscribers and Family plan primary account holders.
Amazon Music mobile app interface
This move follows Spotify's recent audiobook bundling strategy, which has sparked controversy in the music industry. Unlike Spotify's 15-hour monthly listening cap, Amazon Music offers one complete audiobook of any length.
The key concern within the music industry centers on potential royalty implications. Spotify's recent reclassification of its subscriptions as bundles under Phonorecords IV has resulted in significant royalty savings, but at the expense of publishers and songwriters. The Mechanical Licensing Collective (MLC) is currently challenging this practice in court.
David Israelite, head of the National Music Publishers' Association, has expressed optimism about Amazon Music's bundling initiative, though a final agreement on compensation terms is still pending.
This trend of service bundling raises questions about:
- Potential industry-wide adoption of similar strategies
- Impact on songwriter and publisher compensation
- Future of streaming service monetization models
- Implications for upcoming Phonorecords V negotiations
While Amazon Music hasn't explicitly stated plans to follow Spotify's royalty reduction strategy, the addition of audiobooks creates a similar foundation for potential bundling classification.