Amazon is not only an online marketplace and services center, but it’s also one of the world’s largest corporations, and the conglomerate owns several small to medium-sized companies within its wide reach.
If you are wondering if Audible is owned by Amazon, you have found exactly the article you were looking for! We have all the information you need right here.
Audible is a subsidiary of Amazon, which means that Amazon does own Audible. Audible is the world’s most popular audiobook streaming service with the world’s largest selection of audiobooks. Although Amazon owns Audible, the subscriptions are separate; You will need a specific Audible subscription to enjoy the offerings.
Keep reading if you want to find out how Audible is owned by Amazon, when it was purchased, and even what other companies Amazon owns. You are going to be an Audible expert in no time!
Audible is an Amazon company through and through; in fact, it is completely owned by Amazon and has no other owners.
Audible is a huge online resource for audiobooks which holds over 200,000 of the world’s most popular titles. With classics and even new bestsellers, you can find almost every book imaginable on Audible, read by some fantastic narrators.
For this reason, Amazon purchased Audible in order to allow their Kindle users to access the hundreds of thousands of titles, and overall, you could say it was a pretty smart purchase.
Did Amazon Always Own Audible?
Amazon didn’t always own Audible. When the site was created in 1995, it was owned by a single man, Donald Katz.
Katz created the model but the technology wasn’t ready for the public until 1997. That year, a media player called Audible was released which users could access via the internet on their desktops to download dozens of audiobooks to enjoy.
Audible creator, Donald Katz, owned the company until he sold it to Amazon, although he almost sold it to Apple instead in 2003. For some reason, the deal fell through, and that’s when Amazon swept in.
Amazon bought Audible in 2008 for $300 million, so you could say that Donald Katz did fairly well for himself!
However, you might be interested to know that Audible was already doing incredibly well even without the Amazon corporation behind them.
In 2000, when Audible decided to opt for subscription memberships instead of individual downloads, their annual income was an amazing $4.5 million. The company itself was valued at $538 million, so even though Donald Katz made a killing, Amazon really got Audible at a bargain.
Amazon bought Audible in order to be able to offer the services to their users, therefore increasing customer satisfaction and retention, all while being able to increase their monthly subscription plans.
It immensely increased their digital library, and more importantly their annual income. With millions of monthly Audible subscriptions, purchased downloads, advertisement sales, and even royalties from authors and celebrities, Amazon makes millions of dollars every year.
Audible can now be accessed on e-readers, smartphones, tablets, and computers, and audiobooks only seem to become more popular by the day! Whether people prefer listening to their books because it leaves them hands free and able to move around the house, or for students who feel they learn more audibly versus visually, audiobooks have taken the world by storm.
Amazon makes smart purchases, and there is no doubt that buying Audible was a calculated, and as it turns out, brilliant choice for the company.
Audible is not in competition with Amazon because it is owned by Amazon. However, when Audible was first released, it was really the only media player of its kind, but now Amazon and Audible have several other competitors to worry about.
Sites such as Audiobooks.com, Audiobooks Now, and Downpour, are all in direct competition with Amazon’s Audible. But even though these companies are certainly growing, Audible still leads the market by a mile.
It’s important to understand that Audible is Amazon, and while the billion-dollar company offers most of its services under its own name, i.e. Amazon Prime, Amazon Music, Amazon Video, etc, Audible is absolutely 100% an Amazon service.
Most Amazon services, such as those listed above, are included in Amazon’s Prime membership subscriptions. So you might be wondering, since Audible is Amazon’s audiobook offering, is it free with Amazon Prime?
Unfortunately for Prime users who love audiobooks, Audible is not included in your Prime membership.
In order to access the hundreds of thousands of audiobooks on Audible, you need to sign up for a monthly membership with Audible separately from your Prime membership.
Amazon does offer some Audible titles on their Kindle Unlimited subscription, but most of the audiobooks need to be purchased unless you have your own Audible membership.
Amazon owns an incredible number of subsidies. While the current number is over 100, it’s hard to keep track because of the constant buying and selling of companies.
Although it is safe to say that the number of companies Amazon owns is steadily rising, and the conglomerate seems to want to take over the entire world, or at least, the online services industries.
Of its many companies under the Amazon corporation, here are some of the biggest names that Amazon owns:
- Whole Foods Market
- Amazon Robotics (Including The Gap, Staples, Walgreens, Office Depot, Crate & Barrel, Saks 5th Avenue, and more.)
- Amazon Fresh
And oh so many more! Amazon is sweeping the globe when it comes to purchasing companies, and what they will purchase next is really anyone’s guess.
Amazon does own Audible, and they have since 2008. Amazon makes millions of dollars every year through Audible subscriptions, advertisements on the app, and pay per download for millions of books. Amazon made Audible the leading audiobook site around the world, and for only $300 million, it was a bargain!
Welcome to CompanyScouts! I am Jake, the founder of CompanyScouts. I hold an Msc in Economics and Business Administration. With a deep interest in the consumer segment, I strive to help people get to know their favorite companies even better.