Understanding Audiobook Rights and Royalties: What Every Author Needs to Know
- Dec 21, 2024
- 4 min read
Updated: 6 hours ago
Publishing an audiobook can open your work up to an entirely new audience, but before you hit "publish", it's important to understand how audiobook rights and royalties work.
Many authors assume audiobook royalties are straightforward. In reality, what you earn can vary depending on where your audiobook is sold, how listeners access it, and which distribution route you choose.
The good news is that once you understand the basics, making informed decisions becomes much easier.
What Are Audiobook Rights?
When you create a book, you automatically own a range of rights connected to that work.
Audiobook rights are simply the rights to create and distribute an audio version of your book.
As the author, you can:
Produce the audiobook yourself
Work with a professional production company
Licence the rights to a publisher
Distribute the finished audiobook through various platforms
Unless you've signed those rights away in a publishing agreement, they remain yours to control.
What Are Royalties?
Royalties are the payments you receive when someone buys, borrows, or listens to your audiobook.
The amount you earn depends on several factors, including:
The platform selling the audiobook
Whether the audiobook is purchased outright or accessed through a subscription
Whether you're distributing directly or through a distributor
Any agreements you've entered into regarding production or distribution
This means there is no single royalty rate that applies everywhere.
Exclusive vs Non-Exclusive Distribution
One of the first decisions you'll face as a self-published indie author is whether to distribute exclusively through a particular retailer or make your audiobook available more widely.
Exclusive Distribution
Exclusive arrangements typically restrict where your audiobook can be sold.
In return, platforms may offer higher royalty rates or additional promotional opportunities.
The advantage is simplicity and potentially higher earnings from that retailer.
The disadvantage is that you're limiting where listeners can discover your audiobook.
Non-Exclusive Distribution
Non-exclusive distribution allows you to sell through multiple retailers and library services.
This gives you wider reach and more flexibility, although royalty rates may vary from platform to platform.
For many indie authors, non-exclusive distribution provides the greatest long-term opportunity to grow their audience.
How Audiobook Distribution Works Today
The audiobook distribution landscape has changed considerably in recent years.
Many authors will remember Findaway Voices, which became one of the most popular options for wide audiobook distribution.
Following Spotify's acquisition of Findaway, the distribution model evolved.
Today, indie authors will most commonly encounter:
ACX
ACX remains the primary route for distributing audiobooks to Audible and Amazon.
For authors whose audience primarily uses Audible, it remains an important platform.
Spotify for Authors
Spotify now provides audiobook management tools directly through Spotify for Authors.
This allows authors and publishers to manage their presence on Spotify and access listener data and reporting.
Voices by INaudio
Voices by INaudio is the successor to Findaway Voices for indie authors seeking wide distribution.
It provides access to numerous audiobook retailers, subscription services, and library platforms through a single dashboard.
For many authors, it remains one of the simplest ways to reach listeners beyond Audible.
Why Royalty Rates Can Be Confusing
Many articles quote specific royalty percentages, but audiobook royalties are constantly evolving.
A retailer may adjust its payment structure, subscription model, or distribution agreements at any time.
Rather than focusing on a single percentage, it's often more helpful to understand how royalties are calculated.
In most cases:
A retailer sells or delivers access to your audiobook.
The retailer keeps a portion of the revenue.
The remaining amount is paid to the distributor or rights holder.
You receive your agreed share.
The exact figures vary depending on the platform and sales model.
This is why two sales on different platforms can generate different royalty payments.
Libraries and Subscription Services
Not every listener purchases audiobooks outright.
Many discover books through:
Public libraries
Subscription services
Streaming platforms
These services often use different payment models from traditional retail sales.
While individual payments may sometimes be lower than direct purchases, they can significantly increase discoverability and help authors reach new audiences.
For some authors, library and subscription listening becomes an important part of their overall audiobook income.
Keeping Control of Your Rights
One of the biggest advantages of self-publishing is retaining control.
Before agreeing to any distribution arrangement, make sure you understand:
Where your audiobook can be sold
How long the agreement lasts
Whether the arrangement is exclusive
How royalties are calculated
How and when payments are made
A little research at the beginning can prevent a lot of frustration later.
Final Thoughts
Audiobook rights and royalties don't have to be complicated.
The key is understanding that royalties vary between platforms, distribution methods, and listening models.
Rather than chasing the highest percentage, it's often worth considering the bigger picture:
Where your listeners are
How widely you want to distribute
How much administration you're willing to manage
Whether maintaining flexibility is important to you
The right choice is rarely the same for every author.
What matters is finding a distribution strategy that supports your goals while keeping you in control of your audiobook rights.
If you’re ready to start your audiobook venture, visit www.IndieAudiobookProductions.co.uk to learn more about how we can give your book the voice it deserves.