Audible
is an Amazon owned company that serves as an E-Retailer and producer of spoken
audio entertainment.  Audible’s service
offering includes audiobooks (books), TV and radio programs, and audio versions
of magazines and newspapers.  Nearly any
and every source of entertainment and information is made available through
Audible and all located in one central forum for ease of consumer access.

Audbile Inc. was founded
by Donald Katz in 1995, who still serves as CEO, and was subsequently made
public in 1999, with an initial offer amount of $36 million.  Amazon later purchased Audible in January of
2008 for approximately $300 million dollars.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!


order now

Audible is considered the
most successful audiobook retailer, with a library consisting of 325,000
available titles for its subscribers.  As
technology continues to integrate into the fabric of both commerce and culture,
while traditional book sales and consumption become an ancient relic, Audible is
poised for continued growth, as membership has consistently risen nearly 40%
year on year, with no signs of slowing down. (Graham, 2016)

 

Business
Model

Audible
Inc. has adapted and transformed its business model drastically since its
founding in 1995.  Starting as a simple
online store, Audible has transitioned to meet the growing technical demands of
consumers and readers and now offers their titles through a downloadable
application that is compatible with nearly all forms of devices as a standalone
application, or through Amazon’s own Kindle as a supplemental application.  

In 2016, not only were
over 50% of all audiobooks digitally downloaded, but nearly 60% of audiobook
users reportedly used either their smartphone or tablet to read, or listen, to
a purchased title. Furthermore, while the majority of readers typically listen
at home, on their mobile devices, it should also be noted that nearly 60% of
listeners access their library while driving, 45% during travel, and approximately
50% listened outside of their homes. (Audio Publishers Association, 2017)

Audbile’s application
allows for anytime, anywhere listening, with the ability to be interrelated
across multiple devices with seamless integration.   Although a user is able to access their
Audible library by other means than their mobile device, the focus of this
article will be on the how the majority of practical users utilize their
Audible account.

The Audible app acts as a
readers personal library, book store, and librarian all in one.  Within the application, a user is able to
store all purchased books, search the online store to acquire new titles, and
even compare and look to uncover reviews and suggestions that the user may be
interested in. It is evident that audiobooks have not only changed the way
readers consume their entertainment content, but transformed how, when, and
where consumers read through the use of mobile applications, with Audible
blazing the trail.

8
Elements of the Business Model

Taking
a deeper dive into what makes up the overall business model for the Audible
app, there must first be a general understanding of the different aspects that
make up a specific business model.  This
section will walk through those 8 varying elements, and then narrow in on how
each directly applies to Audible.

 

Value Proposition

            The Value Proposition that Audible delivers has not only
been the near extinction of physical book shopping at brick and mortal
retailers, but the creation of anytime, anywhere mobile access to all forms of
written entertainment – books, magazines, newspapers, podcasts, etc.  The value offered to Audible consumers is
truly hard to tangibly describe or articulate because the method of consumption
is such a revolutionary product and process. 
Audiobooks, and specifically Audible, have transformed the book retailer
landscape, both physically and digitally.  
The value add is delivered not only in the way by which readers, or
listeners, consume content, but the additional flexibility and freedom it
offers.  Readers can now be cooking a
meal while in deep contemplation during the reading of a meditation book, or
driving their car while experience the epic Lord of the Rings saga.  Essentially, Audible allows for the freedom
of consumption, which in turn grants listeners the time to remain productive or
multi task simultaneously.  According to
Audio Publishers Association, not only do audiobooks provide an unmeasurable
level of consumption freedom, but help encourage listeners to read more often,
with 77% of frequent listeners agreeing that audiobooks help finish more
books.  “The top three reasons why people
enjoy listening to audiobooks are: (1) they can do other things while
listening; (2) audiobooks are portable and people can listen wherever they are;
and (3) they enjoy being read to.”(Audio Publishers Association, 2017)