Audible subsidizes its streaming plan via premium credits: Difference between revisions

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-'''[[Audible]]''' is transitioning its audiobook marketplace from a traditional purchase model into a streaming service.<ref name=":0">{{Cite web |last=Greene |first=Daniel |date=2025-08-25 |title=Nail in Audible's coffin |url=https://www.youtube.com/watch?v=2BJIZA_OpDw |url-status=live |access-date=25 Aug 2025 |website=[[YouTube]]}}</ref><ref name=":1">{{Cite web |last=Hartness |first=John |date=25 Aug 2025 |title=AUTHORS ASSEMBLE! Audible generative AI takeover {{!}} How this hurts Authors and Narrators |url=https://www.youtube.com/watch?v=wLKQAASI6y0 |url-status=live |access-date=25 Aug 2025 |website=[[YouTube]]}}</ref><ref name=":4">{{Cite web |last=Greene |first=Daniel |date=12 Aug 2025 |title=Audible is Broken |url=https://www.youtube.com/watch?v=xhTmMv_s578 |url-status=live |access-date=25 Aug 2025 |website=[[YouTube]]}}</ref><ref name=":3">{{Cite web |date=25 Aug 2025 |title=Learn more about audio books with virtual voice |url=https://kdp.amazon.com/en_US/help/topic/G3QRL9HQNF273Q2H |url-status=live |archive-url=https://web.archive.org/web/20250825204046/https://kdp.amazon.com/en_US/help/topic/G3QRL9HQNF273Q2H |archive-date=25 Aug 2025 |access-date=25 Aug 2025 |website=[[Amazon]]}}</ref> In August 2025, Audible has changed their royalty structure to subsidize this transition, by taking money consumers spend on audiobooks and distributing it across all the audiobooks the consumer listened to that month, regardless on whether or not the audiobook was purchased or streamed using Audible's streaming service.<ref name=":4" /><ref name=":8">{{Cite web |last=Sullivan |first=Robin |date=8 August 2025 |title=Convince Audible to revise it's New Royalty Model |url=https://www.change.org/p/convince-audible-to-revise-it-s-new-royalty-model |url-status=live |access-date=26 Aug 2025 |website=[[Change.org]]}}</ref><ref name=":5">{{Cite web |author=paigevoice |date=13 Aug 2025 |title=Audible's new royalty mess |url=https://www.youtube.com/watch?v=8QZEEXOtJik |url-status=live |access-date=2025-08-25 |website=[[YouTube]]}}</ref>
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+'''[[Audible]],''' an audiobook marketplace and subsidiary of [[Amazon]], is changing its royalty structure to subsidize its streaming service with premium credit purchases.<ref name=":0">{{Cite web |last=Greene |first=Daniel |date=2025-08-25 |title=Nail in Audible's coffin |url=https://www.youtube.com/watch?v=2BJIZA_OpDw |url-status=live |access-date=25 Aug 2025 |website=[[YouTube]] |archive-url=https://preservetube.com/watch?v=2BJIZA_OpDw |archive-date=16 Feb 2026}}</ref><ref name=":1">{{Cite web |last=Hartness |first=John |date=25 Aug 2025 |title=AUTHORS ASSEMBLE! Audible generative AI takeover {{!}} How this hurts Authors and Narrators |url=https://www.youtube.com/watch?v=wLKQAASI6y0 |url-status=live |access-date=25 Aug 2025 |website=[[YouTube]]}} ([https://preservetube.com/watch?v=wLKQAASI6y0 Archived])</ref><ref name=":4">{{Cite web |last=Greene |first=Daniel |date=12 Aug 2025 |title=Audible is Broken |url=https://www.youtube.com/watch?v=xhTmMv_s578 |url-status=live |access-date=25 Aug 2025 |website=[[YouTube]] |archive-url=https://preservetube.com/watch?v=xhTmMv_s578 |archive-date=16 Feb 2026}}</ref><ref name=":3">{{Cite web |date=25 Aug 2025 |title=Learn more about audio books with virtual voice |url=https://kdp.amazon.com/en_US/help/topic/G3QRL9HQNF273Q2H |url-status=live |archive-url=https://web.archive.org/web/20250825204046/https://kdp.amazon.com/en_US/help/topic/G3QRL9HQNF273Q2H |archive-date=25 Aug 2025 |access-date=25 Aug 2025 |website=[[Amazon]]}}</ref> In August 2025, the new structure took effect. It works by spreading the reader's plan value and premium credits across all books the reader listened to during the month, regardless of whether or not the audiobook was purchased or streamed using Audible's streaming service.<ref name=":4" /><ref name=":8">{{Cite web |last=Sullivan |first=Robin |date=8 August 2025 |title=Convince Audible to revise it's New Royalty Model |url=https://www.change.org/p/convince-audible-to-revise-it-s-new-royalty-model |url-status=live |access-date=26 Aug 2025 |website=[[Change.org]] |archive-url=http://web.archive.org/web/20250826122705/https://www.change.org/p/convince-audible-to-revise-it-s-new-royalty-model |archive-date=26 Aug 2025}}</ref><ref name=":5">{{Cite web |author=paigevoice |date=13 Aug 2025 |title=Audible's new royalty mess |url=https://www.youtube.com/watch?v=8QZEEXOtJik |url-status=live |access-date=2025-08-25 |website=[[YouTube]] |archive-url=https://preservetube.com/watch?v=8QZEEXOtJik |archive-date=16 Feb 2026}}</ref>
 ==Background==
-Audible, founded in 1995, is the longstanding global market leader for purchasing and listening to audiobooks.<ref name=":2">{{Cite web |last=Knight |first=Lucy |date=2025-05-13 |title=Audible unveils plans to use AI voices to narrate audio books |url=https://www.theguardian.com/books/2025/may/13/audible-unveils-plans-to-use-ai-voices-to-narrate-audiobooks |url-status=live |access-date=25 Aug 2025 |website=The Guardian}}</ref> Since 2020, Audible has offered two plan-types to consumers: a premium plan that gives credits consumers can use to purchase audiobooks and a non-premium plan that allows consumers to stream an Audible-curated selection of audiobooks.<ref>{{Cite web |last= |date=24 Aug 2020 |title=All-You-Can-Listen Membership Option, Audible Plus, Rolls Out in Preview |url=https://www.audible.com/about/newsroom/all-you-can-listen-membership-option-audible-plus-rolls-out-in-preview |url-status=live |access-date=26 Aug 2025 |website=[[Audible]]}}</ref> Common knowledge suggests if a credit is spent on an audiobook, the author and audible split that credit by some agreed upon percentage.<ref name=":5" /> For an audiobook streamed through Audible, it is reasonable to expect the subscription price is split between all streamed audiobooks for the given month.
+Audible, founded in 1995, is the longstanding global market leader for purchasing and listening to audiobooks.<ref name=":2">{{Cite web |last=Knight |first=Lucy |date=2025-05-13 |title=Audible unveils plans to use AI voices to narrate audio books |url=https://www.theguardian.com/books/2025/may/13/audible-unveils-plans-to-use-ai-voices-to-narrate-audiobooks |url-status=live |access-date=25 Aug 2025 |website=The Guardian |archive-url=https://web.archive.org/web/20260223032613/https://www.theguardian.com/books/2025/may/13/audible-unveils-plans-to-use-ai-voices-to-narrate-audiobooks |archive-date=23 Feb 2026}}</ref> Since 2020, Audible has offered two plan-types to consumers: a premium plan that gives credits consumers can use to purchase audiobooks and a non-premium plan that allows consumers to stream an Audible-curated selection of audiobooks.<ref>{{Cite web |last= |date=24 Aug 2020 |title=All-You-Can-Listen Membership Option, Audible Plus, Rolls Out in Preview |url=https://www.audible.com/about/newsroom/all-you-can-listen-membership-option-audible-plus-rolls-out-in-preview |url-status=live |access-date=26 Aug 2025 |website=[[Audible]] |archive-url=http://web.archive.org/web/20251114094841/https://www.audible.com/about/newsroom/all-you-can-listen-membership-option-audible-plus-rolls-out-in-preview |archive-date=14 Nov 2025}}</ref> Common knowledge suggests if a credit is spent on an audiobook, the author and audible split that credit by some agreed upon percentage.<ref name=":5" /> For an audiobook streamed through Audible, it is reasonable to expect the subscription price is split between all streamed audiobooks for the given month.
 ==Consumer rights impact summary==
 ===Digital ownership erosion===
-Since 2020, Audible has been transitioning its marketplace from a traditional purchase model into a [[Subscription service|streaming service]]. In August 2025, Audible unveiled a new royalty structure to siphon money from credit purchases to subsidize their streaming library.<ref name=":4" /><ref name=":8" />
+Since 2020, Audible has been shifting more focus on its [[Subscription service|streaming service]]. In August 2025, Audible unveiled a new royalty structure to siphon money from credit purchases to subsidize their streaming library.<ref name=":4" /><ref name=":8" />
+===Disingenuous pricing structure===
+In August 2025, Audible rolled out their new royalty structure which fundamentally changes how authors are paid when their books are streamed. Instead of the streaming plan being primary funding method for streamed books (via an up-front fee), the new structure takes the reader's plan value, adds the value of any additional credits used, and then divides that value among the titles the reader listened to over the month.<ref name=":6" />
+===Streaming favors larger authors and publishers===
+Audible determines which authors and books are included as part of its streaming library.<ref>{{Cite web |last=Greenwood |first=Allan |date=15 Sep 2023 |title=Discussion on "I really wish more authors would use the audible plus catalog for their first books, it's hard to test new stuff." |url=https://old.reddit.com/r/litrpg/comments/16jzbsq/i_really_wish_more_authors_would_use_the_audible/k0sxsc7/ |url-status=live |access-date=7 Sep 2025 |website=Reddit.com |archive-url=https://web.archive.org/web/20260223032659/https://old.reddit.com/r/litrpg/comments/16jzbsq/i_really_wish_more_authors_would_use_the_audible/k0sxsc7/ |archive-date=23 Feb 2026}}</ref> This disproportionately favors larger, more established authors and publishers who can negotiate premium rates with Audible.<ref>{{Cite web |last=Mathews |first=J.R. |date=17 Sep 2023 |title=Comment on "I really wish more authors would use the audible plus catalog for their first books, it's hard to test new stuff." |url=https://old.reddit.com/r/litrpg/comments/16jzbsq/i_really_wish_more_authors_would_use_the_audible/k0ywscj/ |url-status=live |access-date=7 Sep 2025 |website=Reddit.com |archive-url=https://web.archive.org/web/20260223032729/https://old.reddit.com/r/litrpg/comments/16jzbsq/i_really_wish_more_authors_would_use_the_audible/k0ywscj/ |archive-date=23 Feb 2026}}</ref> In 2022, via his blog, Brandon Sanderson says: <ref>{{Cite web |last=Sanderson |first=Brandon |date=22 Dec 2022 |title=State of the Sanderson 2022 |url=https://www.brandonsanderson.com/blogs/blog/state-of-the-sanderson-2022 |url-status=live |access-date=7 Sep 2025 |website=Brandon Sanderson's Blog |archive-url=http://web.archive.org/web/20260201134053/https://www.brandonsanderson.com/blogs/blog/state-of-the-sanderson-2022 |archive-date=1 Feb 2026}}</ref>
+<blockquote>However, they treat authors very poorly. Particularly indie authors. The deal Audible demands of them is unconscionable, and I’m hoping that providing market forces (and talking about the issue with a megaphone) will encourage change in a positive direction.</blockquote>This quote highlights two things: that the idea that Audible treats their indie authors poorly and that a very large author can directly negotiate with Audible where indie author cannot.
 ==Audible updates their royalty structure==
 In the past, if you wanted to purchase an audiobook on Audible, you purchased a credit and then used that credit to buy the audiobook you desired.<ref name=":5" /> The understanding was the cut of the credit that went towards the author, only went to the author of the audiobook that was purchased. In August 2025, Audible unveiled a new royalty structure combining its credit-based sales with its streaming service, creating a system that indirectly pushes authors toward the streaming environment.<ref name=":3" /><ref name=":5" /><ref name=":6">{{Cite web |date=2024-07-11 |title=Audible's New Royalty Model: More Opportunities for Authors and Publishers |url=https://www.audible.com/about/newsroom/audibles-new-royalty-model-more-opportunities-for-authors-and-publishers |url-status=live |archive-url=https://web.archive.org/web/20240711211955/https://www.audible.com/about/newsroom/audibles-new-royalty-model-more-opportunities-for-authors-and-publishers |archive-date=11 Jul 2024 |access-date=25 Aug 2025 |website=Audible}}</ref> When a user purchases a book using a credit and also streams another title in the same month, the royalty pool from that single credit is split between both the purchased and streamed works.<ref name=":8" /><ref name=":5" /> While financially efficient for Audible, this structure dilutes the revenue earned per title and forces authors to subsidize the growth of Audible's streaming catalog.<ref name=":0" /><ref name=":8" /> Even if authors opt-out of the streaming catalog, they are not protected from the royalty split.<ref name=":4" /><ref name=":8" /> Audible has created a system that encourages the streaming catalog to be increasingly populated by works that can be produced cheaply or en masse, such as AI-generated content. Over time, this dynamic risks reducing the diversity and sustainability of high-quality content, narrowing consumer choice.
-A petition at change.org has been made to convince Amazon to change this. https://www.change.org/p/convince-audible-to-revise-its-new-royalty-model?source_location=psf_petitions
+A petition at change.org has been made to convince Amazon to change this.<ref name=":8" />
 ==Lawsuit over royalties==
-In June 2025, a federal judge allowed an antitrust lawsuit against Amazon/Audible to proceed.<ref>{{Cite web |last=Scarcella |first=Mike |date=2025-06-20 |title=Amazon must face authors' lawsuit over audiobook distribution, US judge rules |url=https://www.reuters.com/legal/litigation/amazon-must-face-authors-lawsuit-over-audiobook-distribution-us-judge-rules-2025-06-11 |url-status=live |access-date=25 Aug 2025 |website={{Wplink|Reuters}}}}</ref> The lawsuit, filed by independent author Christine DeMaio (CD Reiss), alleges Audible discriminates against authors who do not participate in its 90-day exclusivity program by offering higher royalties (40% vs. 25%), potentially violating antitrust laws. The court found sufficient grounds to move forward.
+In June 2025, a federal judge allowed an antitrust lawsuit against Amazon/Audible to proceed.<ref>{{Cite web |last=Scarcella |first=Mike |date=2025-06-20 |title=Amazon must face authors' lawsuit over audiobook distribution, US judge rules |url=https://www.reuters.com/legal/litigation/amazon-must-face-authors-lawsuit-over-audiobook-distribution-us-judge-rules-2025-06-11 |url-status=live |archive-url=https://ghostarchive.org/archive/IHC4I |archive-date=27 Feb 2026 |access-date=25 Aug 2025 |website={{Wplink|Reuters}}}}</ref> The lawsuit, filed by independent author Christine DeMaio (CD Reiss), alleges Audible discriminates against authors who do not participate in its 90-day exclusivity program by offering higher royalties (40% vs. 25%), potentially violating antitrust laws. The court found sufficient grounds to move forward.
 ==Consumer response==