Society of Authors slams 'lack of consultation' on Spotify audiobooks deals

The Society of Authors (SoA) has said it is "deeply concerned" about the streaming deals the major publishers have agreed with Spotify, saying that writers haven’t been consulted and streaming will damage book sales. The SoA’s c.e.o. Nicola Solomon has also suggested that the competition authorities should be alerted over the deals.

It was announced last week that all the major publishers had entered into the deals with the Swedish tech company, with several agents optimistic about how Spotify’s streaming programme could amplify authors and provide competition to Audible. However, the SoA has heavily criticised the new development. 

In a statement the authors’ body said: “The Society of Authors was deeply concerned last week to learn from press reports that ‘all major book publishers’ have agreed new limited streaming deals with Spotify. Under these agreements, subscribers to the Spotify Premium service in the UK and Australia will gain access to up to 15 hours of audiobook content per month through the Spotify app, from a catalogue of more than 150,000 audiobooks. 

“As far as we are aware, no authors or agents have been approached for permission for such licences, and authors have not been consulted on licence or payment terms. Publishing contracts differ but in our view most licences given to publishers for licensing of audio do not include streaming. In fact, it is likely that streaming was not a use that had been invented when many such contracts were entered into.” 

Solomon said: “We know the devastating effect that music streaming has had on artists’ incomes, and the impact of streaming and subscription video on demand platforms on screenwriter incomes and their working conditions. We have long been concerned about streaming models for books. 

“The streaming of audiobooks competes directly with sales and is even more damaging than music streaming because books are typically only read once, while music is often streamed many times.” 

Solomon highlighted how The Bookseller had reported last week that “book publishers have long expressed reservations about subscription deals for digital content, but Spotify has offered variations of the typical pooled income arrangement, with a more limited offer that publishers believe will assure agents and authors that their income streams will not be undermined”. 

She disagreed that this consultation had taken place: “However, authors and agents have simply not been contacted about such offers, let alone reassured,” she said. “The fact that all major publishers have entered such arrangements at the same time seems to raise questions that perhaps should be reported to the competition authorities.” 

The society also emphasised a comment posted on The Bookseller’s report from Robert Gottlieb, chairman of Trident Media Group, who wrote: “Subscription services are a good deal for publishers and a bad deal for authors...Subscription services build into the market expectations of low prices which have negative reverberation for authors going forward with consumers. It has a negative impact on backlist titles as well. The financial model for authors at the end of the day means small returns.  

“While many authors struggle to make a fair living these models make matters worse for authors both in book sales and financially. Given these facts publishers must let authors opt out of Subscription services if they wish to. What is also a great concern is publishers in mass agreeing to terms for this business model. This type of behaviour is what triggered investigations by the Department of Justice in the US.” 

The SoA urged publishers to contact authors and agents immediately to inform them of the details of the proposed deals and to seek their permission. 

Solomon also called for publishers to undertake other measures to protect authors, including negotiating an appropriate share of the receipts and ensuring that Spotify ensures time-limited loans, among other things. 

The Bookseller approached major publishers for comment. Penguin Random House said: “Our participation in the Spotify audiobook programme is not a departure from our position that we will not participate in unlimited access subscription models. The Spotify programme limits the monthly hours a subscriber can listen to an audiobook which in our view preserves the value of the intellectual property.”