Spotify shares rose over 3% following the announcement that the streaming company will add physical book sales to its platform through a partnership with Bookshop.org. The initiative, scheduled to begin this spring, expands Spotify's commerce options beyond its existing audiobook service launched in 2022.
Under the deal, Spotify will enable premium subscribers in the U.S. and U.K. to purchase hardcover and paperback books from within the app. Bookshop.org will be responsible for retail pricing, inventory management and order fulfillment. Spotify will receive an affiliate fee for purchases made through its application; the amount of that fee was not disclosed.
Bookshop.org is noted for sharing a portion of its profits with independent bookstores. The partnership therefore links Spotify's platform to a retail partner that operates with that revenue-sharing model, while leaving logistical and pricing responsibilities to Bookshop.org.
Spotify's entry into physical book retail places it in a competitive set that includes Amazon.com, which currently dominates online book sales and also owns Audible, a leading audiobook provider. The company frames this move as part of a broader effort to expand its content ecosystem beyond music streaming.
"We want to expand the audience for books," said Owen Smith, Spotify's global head of audiobooks, commenting on the company's decision to offer physical book purchases in its app.
The firm presented this expansion as another avenue to pursue new revenue streams and methods to increase user engagement on its platform. The approach combines Spotify's app distribution with a third-party retail and fulfillment partner, and compensates Spotify via an affiliate arrangement whose specifics remain private.
Context and implications
- Spotify first entered the audiobook market in 2022 and is now broadening its content offerings to include physical books.
- The partnership structure assigns retail operations and order handling to Bookshop.org while Spotify receives an undisclosed affiliate fee.
- By adding book sales, Spotify positions itself alongside major online retailers that sell books and operate audiobook services.