HarperCollins CEO reveals Spotify’s entry into audiobooks, how AI is influencing publishing

The future of audiobooks and the impact of AI on the publishing industry were talking points for HarperCollins, whose CEO, Brian Murray, spoke UBS Global Media and Communications Conference on Tuesday. At the event, the CEO praised Spotify’s entry into the audiobook market and detailed his future plans in the area. He also touched on how AI technology could threaten and harm publishers in the days to come.

Note, Murray said that audiobooks keep selling e-books in terms of total revenue and is helping to reduce the decline in e-book sales. On the subject of AI, the CEO refused to discuss licensing, as he does signed by Microsoft for AI model studies, citing NDAs, but stressed that it is early days for AI licensing, calling it an “exciting time” for the industry.

He also thanked directly Spotify enters the audiobooks spacerefer to the 15 hours of free listening included with a Spotify Premium subscription sponsored markets.

“Spotify entered the market very smartly,” Murray said. “They had millions of listeners to music and podcasts… He said that while Amazon-owned Audible was able to make money from listening to audiobooks, Spotify’s brand is based on the potential of occasional listeners.

He said: “You didn’t have to sign up and commit to so many books a year.” “You can … do it with your 15 hours for free. You can try. And I think that the entry way – I mean, now we know next year – the entry way has been very successful for Spotify, and because of that, we grow a little bit in our whole business.”

Spotify’s relationship with HarperCollins, similar to Harper’s deal with Audible, also involves large distribution, which means the publisher is paid for the price — the audio quality, Murray said. This type of model is more direct than the music streaming model where a large amount of subscription money goes into a pool and is then distributed to artists. The publisher can tell authors exactly what their revenue will be from audiobooks under this model.

Murray also pointed out that there is still room for growth with Spotify, as the company works to overcome a “technical problem” with family plans, which currently limit audiobook streaming to credit card holders. Eventually, Spotify will open up listening to all members, he said.

When asked to explain, Spotify said that there is no technical problem, but that the expansion of audiobooks for family purposes is something that it is testing in other markets now.

“Based on Brian Murray’s comments, we are excited about the growing interest in audiobooks and the benefits that are coming to the publishing and authoring industries,” a Spotify spokesperson told TechCrunch via email. “While we don’t have anything to announce today, we’re looking at ways to improve the audiobook experience for Spotify members and look forward to sharing more in the future.”

Spotify has also been expanding audiobooks to more international markets, which opens it up for growth.

Shifting gears, Murray then spoke about the potential and concerns about how artificial intelligence will affect broadcasting.

Beyond the obvious risks associated with IP-based businesses based on copyright, publishers are worried about AI releases, which could lead to an explosion of low-quality content, competing for the time and attention of consumers. However, Murray said he thinks the top quality will win out.

Internally, AI can also help in business areas such as marketing and sales, and there are many initiatives across departments at HarperCollins where they are trying to achieve productivity gains from AI, Murray said.

AI could be useful for audiobooks, too, as it will allow the company to produce audiobooks in smaller markets where they couldn’t say more expensive. Translation of books will also grow, opening the door to more income.

Further down the road, HarperCollins foresees how technology can help turn books into film. “You can imagine that you’re going to take a manuscript, pour it out, put it out on film or television, and then use (It’s OpenAI) Sora to the board,” said Murray. “Depending on … either to rush sales or to get ideas – clear ideas – to film and television artists …