The inaugural International Summit of Audio Publishers (ISAP) drew 137 participants and exhibitors from across Asia, Europe, the Middle East and North America who discussed current market conditions, the impact of AI, and what is coming next for the audiobook industry. Organized by the Audio Publishers Association, the event was held September 10 in New York City.

The audiobook market in the U.S. is continuing to grow, with revenue increasing by 9%, to $2 billion, in 2023, according to the APA. In Europe the market is also gaining momentum, with 46% of German readers reported having listened to an audiobook or podcast in the past year, and nearly one- third of all French and Spanish readers having done so. Overall, the global audiobook market is estimated to be worth $6.83 billion in 2023 and sales are expected to reach $8.67 billion in 2024, according to Grand View Research.

Market growth and regional differences

Discussing Germany, Colin Hauer, CEO of Hörbuch Hamburg, one of Germany's largest audiobook publishers, estimated the total revenue for 2022 at around 300 million euros. The market has seen steady growth, particularly since the Covid-19 pandemic, with approximately half of Germany's 85 million people having consumed audiobooks, podcasts, or audio dramas in the past year.

Chantal Restivo-Alessi, chief digital officer and CEO of international foreign language for HarperCollins, noted significant differences between countries like Germany, with its established audiobook history, and emerging markets in Europe and Latin America. "You really have to understand the market, respect their cultures, and really understand how to operate in each individual situation," she remarked.

Helena Gustafsson, chief content officer at Storytel, shared that in Nordic countries, audiobook consumption has reached impressive levels. In Sweden, for example, audiobooks now account for 35% of publishers' revenues, with 64% of units sold being audiobooks. A recent study there categorized listeners into three main groups: repeaters (who listen to the same books multiple times); swappers (who sample many books before deciding); and super users (who consume large amounts of content). She noted that super users, while potentially the most lucrative, can also present challenges in terms of content consumption rates. “Some might call them ‘super abusers’ instead,” she quipped.

Emerging markets and localization strategies

In the U.S., Audible is by far the most dominant platform in the audiobook market. Lee Jarit was recently named Audible's global head of publisher and partner relations and at the conference he discussed the company's approach to entering new markets, particularly Brazil and Japan.

The Brazilian audiobook industry was still nascent when Audible entered the market, prompting the company to invest heavily in producing 1,500 authentically Brazilian titles, many using celebrity narrators, Jarit explained. "We knew that we'd have to spend upfront in order to create an incredible catalog of audio content that would draw Brazilians to what is essentially a brand-new publishing industry," Jarit said. In addition, the company focused its marketing efforts on highlighting the ability of customers to consume content while completing everyday tasks, which was particularly appealing to commuters in cities like São Paulo with notoriously long travel times.

In Japan, another market where audiobooks were virtually unknown before Audible entered the business, the company faced initial challenges in convincing publishers of the format's viability. There, the company also emphasized using celebrity narrators and collaborating with high-profile authors like Haruki Murakami to generate interest.

In more established markets like the U.S. and U.K., the focus has shifted towards innovation in content delivery and monetization models. Audible, for instance, has introduced a new royalty model that provides more flexibility for publishers and creators to monetize their content across different consumption patterns.

When Spotify launched its audiobook streaming service in October 2023 in the U.S. and the U.K., Owen Smith, VP Product & Technology for Audiobooks at the company, said its approach in those markets included leveraging its massive user base and data-driven recommendation algorithms to introduce audiobooks to new listeners, recommending books based on the company's data about user listening patterns. “Six of the the top ten [audiobooks] on Spotify were released more than five years ago," indicating that they are reaching a different audience compared to other platforms, especially one that is younger, Owens said.

Business models and monetization

The conference also explored the diversity of business models across different markets and platforms. Audible's Jarit explained that while the credit model has been successful in established markets like the U.S., Audible uses an all-you-can-listen models in emerging markets to grow audiences and familiarize consumers with the format.

Spotify is exploring AI applications for content discovery and recommendations, while Audible has introduced an AI-powered search tool called "Maven" to help customers find specific titles using conversational language.

At Storytel, the company has introduced its VoiceSwitcher technology, which enables a listener to change the narrator to suit their preference or mood.

Robert Casten Carlberg, cofounder and CEO of Nuanxed, a technology startup based in Sweden, shared how his company is using AI to assist in translation, potentially speeding up the process of bringing audiobooks to new language markets. However, he noted that for more literary works, the time savings are less significant, and the focus remains on creating high-quality translations, which his company guarantees through the use of human proofers.

Several other challenges were identified across markets including piracy, with platforms and publishers working together to protect content. Other common issues included adapting to different copyright frameworks and translator rights across countries and educating consumers in emerging markets about audiobooks as a format.

Despite these challenges, the overall outlook for the global audiobook market remains positive. As Chantal Restivo-Alessi noted, "publishing is the one industry, along with education, that hasn't crashed with the advent of digital. It's actually done pretty well."

The industry continues to innovate, with companies exploring new ways to engage listeners, from multi-cast productions to immersive audio experiences using technologies like those developed by Dolby Atmos, which was also an exhibitor at the event. Its technology potentially enables producers to create more robust multicast productions. In the U.K., for example, which already has a rich tradition of radio drama, producers are more accustomed to creating highly immersive experiences, often incorporating sound effects and multiple narrators to enhance the storytelling.

The consensus at the event was that as audiobook market matures, the focus will remain on creating high-quality content, improving discovery mechanisms, and adapting to local preferences while leveraging global distribution capabilities.

Community and conversation

Reflecting on the conference, Hauer of Hörbuch Hamburg said he was struck by the fact that even though the different territories may be in different stages of maturity, "they all share the same positive and innovative spirit that contributes to the ongoing success story of audiobooks around the globe.” He added, “At ISAP, the international audiobook industry has shown once more the value of openness and sense of community that really defines our line of work. Spreading the (spoken) word is a lot easier if you communicate with one another and keep an open mind."

Audible’s Jarit also said the conference pointed to the importance of reaching new listeners around the world through content tailored to their local cultures and preferences. "In all of my conversations," he said, "I felt such powerful energy around continuing to grow the audio category, especially in emerging marketplaces, and I’m excited about future collaborations with both global publishers and cutting edge companies.”

Spotify’s Smith noted that meeting with publishers was a major benefit of attending ISAP: “It's always a pleasure to get the opportunity to meet our publishing partners face-to-face at industry events and hear positive feedback from them firsthand."

“We've been talking for years now about the rise of audiobooks, but a conference like ISAP makes it clear that there is still so much ahead,” remarked Heather Fain, industry consultant and director on the board of the APA. “It's fun to be reminded that the hype around audiobooks is real and growing.”