Audible tests lower-priced plan in possible response to Spotify

Audible tests lower-priced plan in possible response to Spotify

Amazon.com Inc.’s Audible is testing a lower-priced audiobook subscription in Australia, a possible response to Spotify Technology SA’s move into the field.

The new plan, called Audible Standard, costs A$8.99 ($5.86) a month. That compares with A$16.45 for the established Premium Plus offering, according to the company’s website. Both provide users with one book a month.

Under the lower-priced plan, subscribers who skip a month without choosing a book won’t have credit that carries over. They’ll have limited access to certain Audible Originals podcasts, which the company produces, and will lose access to audiobooks they’ve chosen if they close their accounts.

“We are eager to learn about customer interest in this type of plan in the coming months,” a spokesperson said in an email.

Audible has historically operated on a model in which subscribers redeem credits for bestsellers or new releases, with unused credits rolling over from month to month. Subscribers who cancel their plans retain ownership of audiobooks they’ve purchased.

Last year, Spotify introduced an audiobooks plan that gives paid subscribers in certain markets including Australia 15 hours of listening a month, typically enough for a single title. Listeners don’t own the audiobooks in any way, and if they want to exceed 15 hours they have to purchase additional time.

Spotify negotiated deals with all five big publishing houses, including Penguin Random House, to bring their catalogs to the service.

Last month, the music streaming leader said 25% of its paid users in the US, UK and Australia have started an audiobook as part of their subscriptions.