Shortly after I published my last book, I was talking to a friend who told me he was going to wait for the film to come out. Not long after, another friend told me the same thing. Commenting to my brother about this, he told me that he knows a lot of people who think that way and, to my sadness, I realized that I did too.
I started researching what the reason for this could be. Some claim to be too lazy to read, others blame a lack of time – but everyone, without exception, loves a good story. I then asked if the audiobook would be a solution, and many said yes, since they can listen to the story while they are doing other activities.
The book market is complex. According to recent research, the average American reads 12 books a year. The majority prefer to read printed books (34% paperback and 16% hardcover), and a significant share prefer e-books (35%). Only about 10% consume audiobooks.
We authors hear all the time that we have to have our books in audiobook format because it’s a growing market, and it’s what today’s reader wants, etc. But is the investment really worth it for the author?
The starting PFH (per finished hour) cost of a narrator is around 100 to 300 US dollars. Considering that audiobooks are on average 10 hours long, even using the minimum rate, it is quite expensive. More experienced narrators or celebrities may charge even more.
An effective way to reduce or eliminate production costs is to produce the audiobook on ACX using Royalty Share, where the narrator receives a percentage of the royalty on each sale. It is usually around 50% but can range between 25% to 75%.
Another important factor to consider is that Audible, the largest audiobook store in the world, only pays 25% royalties on audiobooks or 40% if the author makes an exclusivity contract (and half of that with a Royalty Share). And Audible also dictates the selling price, promotional pricing, etc.
The way Audible promotes the audiobook doesn’t differ much from how Amazon promotes the book in the other formats. Renowned authors or bestsellers will always be given priority.
If the author does not have an exclusive contract with Audible, it is also possible to sell audiobooks directly online through an e-commerce website. But how laborious (or complicated) this can be is hard to measure.
Is there a demand for audiobooks? The answer to that question is yes. Despite the fact that readers who read through this format represent only 10% of the market, about 45% of Americans listened to an audiobook in 2023. And the growth projection in the global audiobook market is considerably high.
Another question we should consider is, is selling audiobooks profitable? Some think so, others don’t. But the important thing is to evaluate the cost/benefit. It is more likely to recoup the investment if the author has several books published and/or a series, so it is easier to promote/sell the book, as the book will be available in all formats. Readers still prefer to read in paperback or e-book, but there is a growing demand for those who prefer audiobook. Maybe it’s still a small market (10%), but if we start investing in it now, maybe we’ll be ahead of other authors in the future. Or, who knows, maybe our books will already be successful movies or TV shows by then?
Threads that Bind 
2 responses to “Is it worth investing in audiobooks?”
Wait for the film to come out, how charming! I don’t know about the rest of you, but I don’t approach the level of a Stephen King or J.K. Rowling, and no one is beating my door down to offer me a movie treatment. This outlook doesn’t bode well for us mortals.
And are audiobooks the answer? Well… If you’re going to be charged a thousand dollars minimum to have one created, how much of that can you expect to recoup? Disclaimer: I don’t know much about audiobook sales other than what you’ve posted here, but it sounds much like an extension of the independent print author’s dilemma: Five hundred to a thousand for an editor, another $500 to $1000 for a boffo, suck-em-in cover, for a book that will make, on average, $250 over its viable lifespan. It becomes a vanity project whether it’s called that or not. It seems almost like a scam.
“Come on, kid, you have to spend money to make money. Don’t you want to be rich and famous?” And some tiny percentage will be, much like some tiny percentage of people who play the state lotteries will be. Will it be you? It seems like you have about the same odds of being struck by lighting during a shark attack.
My own experience? I’ve bought a few audiobooks in my day (they called them “Books on Tape” back then). My plan was to listen as I was driving to work, cleaning the house, etc. Without exception, I would pop in the tape and get busy, enjoying the book until a stubborn stain or some tricky traffic would claim my attention, and I would forget all about the audiobook until the cassette popped out of the player.
So, not for me, for distribution or consumption. Of course, I don’t write much anymore, anyway, so this is just me reminiscing about the old days. I sincerely wish you the best of good fortune in your endeavors, and hope fame and fortune dog your steps wherever you go! Thank you for this very thought-provoking post.
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A couple of comments. It’s relatively easy to distribute audiobooks to virtually all outlets (including Audible) if you use an aggregator like Findaway Voices – however, Findaway got acquired by Spotify, which many authors don’t like because Spotify sells your stuff to AI training scrapers and pays you nothing for that. Author’s Republic is a better option than Findaway if you don’t like Spotify’s policies. And with an aggregator, you generally control the pricing (though still not for Audible). As for profitability… Well, It would be more profitable to use AI narration instead of paying a human narrator. KDP has an AI audiobook beta underway, where you create an audiobook just like you create an e-book or print book; and there are other AI narration services out there that charge on the order of $200 per book (not per hour). But a lot of people are against even human-sounding AI narration on principle. And now that I’ve opened a couple of cans of worms, I shall exit stage-left… 🙂
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