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HarperCollins CEO touts Spotify's audiobooks entry, AI's impact on publishing | TechCrunch

Dec 10, 2024 - techcrunch.com
At the UBS Global Media and Communications Conference, HarperCollins CEO Brian Murray discussed the future of audiobooks and AI's impact on publishing. He praised Spotify's successful entry into the audiobook market, highlighting its strategy of offering 15 hours of free listening with a Premium subscription, which appeals to occasional listeners. This model, based on a wholesale distribution deal, benefits HarperCollins by providing clear royalty calculations for authors. Murray noted that Spotify is working on expanding audiobook access to all family plan members, which could further boost growth. Spotify is also expanding audiobooks to more global markets, enhancing opportunities for publishers.

Murray also addressed the potential and challenges of AI in publishing. While concerned about generative AI leading to lower-quality content, he believes high-quality content will prevail. AI offers internal benefits, such as improving marketing and sales productivity, and could expand audiobook production in smaller markets. Additionally, AI could facilitate book translations and even assist in adapting books into film scripts, potentially speeding up the process and enhancing concept clarity for film and television professionals.

Key takeaways:

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  • Audiobooks are outperforming e-books in revenue, helping offset declines in e-book sales, with Spotify's entry into the market being praised for its successful strategy targeting occasional listeners.
  • HarperCollins has a wholesale distribution deal with Spotify, allowing the publisher to receive payments on a per-listen basis, which is more direct than the streaming music model.
  • AI presents both opportunities and challenges for the publishing industry, with potential benefits in marketing, selling, and expanding audiobook and translation markets, but also risks of lower-quality content.
  • HarperCollins is exploring AI's potential to transform books into film scripts, enhancing speed to market and concept clarity for film and television adaptations.
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