Audible launches a cheaper ‘Standard’ subscription plan, challenging Spotify

Audible has introduced a new subscription tier, the 'Standard' plan, priced at $8.99 per month, as announced on Tuesday. This new offering is significantly cheaper than the existing 'Premium' plan, which costs $14.95 monthly. The Standard plan allows subscribers to enjoy one audiobook each month from Audible's extensive library and provides unlimited access to a selection of Audible Originals. However, it's important to note that users will no longer retain access to audiobooks once they opt out of the subscription, a change from the Premium plan that allows subscribers to keep their previously listened titles. Moreover, the Standard plan includes access to nearly 200 popular titles from the upcoming Wondery+ app, which is set to be discontinued in the near future. Initially, this new plan will be available in the United States, the United Kingdom, Canada, Australia, Germany, and France, with plans for further testing in additional markets. This launch comes at a time when Audible is contending with intensified competition from Spotify, which began offering audiobooks in 2022 and has integrated them into its music and podcast subscription. Spotify reported a 36% increase in audiobook listeners over the past year, with listening hours climbing by 37%. Notably, over half of Spotify's 281 million premium users have engaged with audiobooks. Recently, Spotify raised its subscription prices for the third time in three years, which could create opportunities for competitors like Audible to attract new subscribers. Cynthia Chu, Audible's Chief Financial & Growth Officer, stated, "By expanding our membership options, we’re maximizing access for lighter listeners while enabling publishers and creators to reach new audiences—a win-win that grows the entire audiobook category." Early testing of the Standard plan has shown promising results, with strong member acquisition and retention rates reported in the United Kingdom and Australia. The company anticipates that this new plan will draw millions of additional customers as it expands into new markets.