Does Amazon Own Audible in 2023? Yes, and Here‘s How They‘re Dominating Audiobooks
If you‘re an avid audiobook listener like me, you‘ve probably noticed Amazon‘s Audible everywhere lately. When Amazon acquired the pioneering audiobook company back in 2008, it turbocharged Audible‘s growth and cemented Amazon as the dominant player in this surging category.
In this comprehensive guide, I‘ll share insider insights on:
- Audible‘s origins and innovations pre-Amazon
- Why and how Amazon scooped up Audible in 2008
- How Amazon has fueled Audible‘s exponential growth
- Audible‘s business model, user experience and competitive advantage today
- What the future may hold for Audible under Amazon
Let‘s start at the beginning – how Audible was pioneering audiobook streaming before Amazon came along.
Audible Blazed the Audiobook Trail Long Before Acquisition
It‘s easy to assume Amazon itself created Audible, but Audible was actually founded in 1995 by Donald Katz, an entrepreneur seeking to capitalize on the rise of digital audio.
Katz saw an opportunity to sell audiobooks online years before Amazon was born. Here are some of Audible‘s key innovations in those early days:
1997: Launched the Audible Player, allowing internet download of audiobooks directly to a device. This was revolutionary in the pre-broadband 1990s!
2000: Rolled out audiobook subscriptions, offering unlimited streaming for a flat monthly fee. This remains a key revenue stream today.
By 1999, Audible had:
- Valuation of $538M, demonstrating the market potential
- Annual revenue around $4.5M
- Over 85K subscribers even on slow dial-up connections
Audible was an audiobook pioneer, shaping what is now a multi-billion dollar market.
The Audiobook Industry Then: Ripe for Disruption
To understand Amazon‘s motivations for acquiring Audible, it helps to know the state of audiobooks pre-2008.
Back then, audiobooks were a niche product, largely sold on CDs at brick-and-mortar bookstores. Industry revenue was estimated around $1 billion.
The CD format limited reach and innovation. But with digital distribution emerging, the market was ripe for disruption.
Smartphones took off around 2007, and ebooks started trending thanks to Kindle‘s 2007 launch. Audiobooks seemed poised for the same digital leap.
Amazon saw this opportunity, and felt Audible was perfectly positioned to lead a digital audiobook transformation.
Amazon Acquired Audible for $300M in 2008
In January 2008, Amazon announced it would purchase Audible for $300 million. Audible was valued around 10x its annual revenue, signaling its growth prospects.
This aligned with Amazon‘s focus on expanding digital media and devices. Specifically, acquiring Audible enabled Amazon to:
- Complement Kindle ebooks with audiobooks
- Bring audio entertainment to Kindle and other mobile devices
- Leverage Audible‘s early user base
For Audible, being acquired by Amazon turbocharged their resources and reach.
- Audible became the exclusive seller of audiobooks across Amazon
- Their title catalog ballooned from 60K to over 200K
- Subscribers grew from 85K to millions worldwide
Together, Amazon and Audible had the tools to transform audiobook consumption.
How Audible Transformed Under Amazon
Since 2008, Amazon has given Audible every resource needed to dominate the digital audiobook realm.
Backed by Amazon‘s technology, customer base and content, Audible has grown exponentially. A few numbers illustrate the surge:
| Metric | 2008 | 2022 |
|---|---|---|
| Audible subscribers | 85K | Est. 5M+ |
| Audiobook catalog | 60K titles | 200K+ titles |
| Market share | 2% | 41% |
Today Audible is synonymous with digital audiobooks. Amazon made Audible a centerpiece of its content and devices strategy.
That strategy paid off. Amazon quickly surpassed Apple as the #1 seller of audiobooks. And audiobook revenue overall has skyrocketed thanks to Audible‘s success.
How the Audible Business Works Today
Now operating under the Amazon umbrella, here are some key things to know about how Audible works:
- Subscribers: Over 5 million globally
- Content: 200,000+ audiobook titles and originals
- Revenue model:
- Subscriptions at $14.95/month in the US
- Premium audiobook purchases
- Devices: Apps for iOS, Android, Echo, Fire tablets
For avid listeners, an Audible membership provides great value:
- Credits: 1 for any audiobook/month, rollover unused
- Originals: Ad-free exclusive content
- Ownership: Keep audiobooks even if you cancel
- Integration: Easy listening across Amazon devices
Audible funnels customers seamlessly through the Amazon ecosystem. For example:
- New members get 30 day trials
- Deep integration with Amazon Prime benefits
- Tight recommendation engine connections with Kindle and Amazon Books
This tight bond to Amazon has been the secret sauce fueling Audible‘s rise.
Audible‘s Competitive Advantage vs. Rivals
While Amazon dominates overall book sales, the audiobook arena is more fragmented. Major competitors include:
- Apple Books: Second biggest after Audible with 65K+ titles
- Scribd: Ebook/audiobook subscription service with large backlist
- Google Play: Affordable option, especially for Android devices
- Spotify: Primarily music but expanding into audiobooks
Compared to these rivals, Audible‘s key advantages include:
- Exclusive content: Audible Originals and celeb narrations
- Kindle ecosystem: Tight integration with Amazon devices/services
- Targeted experience: Personalization for book lovers‘ tastes
- Brand equity: Strong association with spoken word audio
For serious audiobook fans, Audible stands out as the premium choice. The Amazon connection makes it hard to beat.
What Does the Future Hold for Audible?
Looking ahead, what might the future hold for Audible under Amazon‘s wing?
On the growth front, international expansion presents major opportunities still to be tapped. Audible is now in over a dozen countries, but has room to grow especially in emerging markets like India.
Content-wise, we can expect more celebrity-narrated exclusives and brand-name author partnerships. Amazon‘s resources and reach give Audible unique advantages here.
Competing services are likely to keep nibbling at Audible‘s market lead. Companies like Spotify want a piece of the surging audiobook pie. But for now, Audible‘s brand, user experience and content pipeline remain extremely formidable.
The Bottom Line
In summary:
- Audible pioneered online audiobooks long before Amazon
- Amazon scooped up Audible in 2008 as audiobooks digitized
- The acquisition provided rocket fuel for Audible‘s growth
- Today Audible is the dominant audiobook platform globally
- Tight Amazon integration gives Audible an unparalleled competitive edge
For listeners like us eager to enjoy books anytime, anywhere, Audible is an indispensable service. Amazon knew exactly what they were doing when they added this jewel to their content crown over 15 years ago.
So next time you fire up your Echo to listen to an Audible Original exclusive, remember Audible‘s remarkable journey to get there!
