Brian Murray, the CEO of HarperCollins, discussed the future of audiobooks and the impact of artificial intelligence on the publishing industry during the UBS Global Media and Communications Conference on Tuesday. He praised Spotify's entry into the audiobook market, noting that this move has created growth opportunities for publishers. Murray specifically highlighted that total revenue from audiobooks has surpassed that of e-books, becoming a crucial factor for publishers to offset the decline in e-book sales.
When discussing Spotify's venture into audiobooks, Murray mentioned that Spotify has successfully transformed into an audiobook platform by leveraging its vast audience base from music and podcasts. He pointed out that Spotify offers 15 hours of free listening per month, attracting a large number of casual audiobook listeners, which differs from the core audience of traditional audiobook platforms like Audible.
Additionally, Murray revealed that HarperCollins' partnership with Spotify is similar to its agreement with Audible, utilizing a pay-per-listen wholesale distribution model that allows publishers to gain clearer insights into audiobook revenues. He also mentioned that after resolving technical issues with family plans, Spotify will provide audiobook services to more users in the future, further expanding its market share.
Regarding artificial intelligence, Murray expressed concerns about its dual role in the publishing industry. On one hand, generative AI could lead to an influx of low-quality content, consuming consumers' time and attention; on the other hand, AI technology can enhance productivity, particularly in areas such as marketing and sales. HarperCollins is currently actively exploring AI applications to boost overall productivity.
For audiobooks, AI also holds potential to assist companies in producing audiobooks for niche markets, breaking the traditional limitations of high production costs. Murray also mentioned that AI will play a significant role in adapting books into films, helping to create scripts, storyboards, and other content, thereby accelerating the film adaptation process.
Murray believes that despite the challenges posed by AI technology, it will ultimately lead to the emergence of high-quality content, driving new development opportunities in the publishing industry.