In this episode of the Christian Publishing Show, Thomas Umstattd shares a special podcast version of the talk he gave at the 2019 ECPA Leadership Summit, an industry event where the leaders of Christian publishing houses gather to talk about trends and the future of the industry.

How Everything Has Changed and Nothing Is New: The Future of Audiobooks and Podcasts.

Before discussing the future, let’s explore the past. As Solomon said, “There is nothing new under the sun.” What seems new is often old.

Consider Homer, author of the classic works The Iliad and The Odyssey. These works were not books but poems. Poetry was an ideal form for memorization and ensured the auditory version of the story could be reproduced accurately. The structure of poetry, likely iambic pentameter, prevented degradation of the narrative across generations. For hundreds of years, the primary version of these stories was audio.

Similarly, in the New Testament, letters by Paul, James, and Peter were intended to reproduce the apostle’s spoken message across different times and places. James 1:22 states, “Be doers of the word, not hearers only, deceiving yourselves.” The Book of James functioned like an audio cassette in that it was designed to be listened to.

In those days, books and letters were read aloud. Reading was a vocal act. Listening engages different parts of the brain that reading. St. Augustine marveled at a monk who could read silently, describing how his eyes scanned the page and received illumination. It was an astonishing feat at the time. Books were loud experiences.

How did the printing press change book consumption?

The invention of the printing press transformed how we interact with books. Suddenly, individuals in church could afford their own copies of the Bible. Yet, most churches still have someone reading scripture aloud on Sundays. Why not have everyone read silently?

There’s something special about the spoken word and experiencing books in their original audio format.

As books became more accessible, silent reading transitioned from a rare skill to a common practice. Stories shifted from being encountered through the ears to the eyes. Poetry evolved from a memorization tool to an art form. Reading became a silent activity, yet the desire to listen to books persisted. Many of us first fell in love with books by listening to our parents read them aloud during our childhood. The tradition of hearing stories has endured from ancient times to today.

How did technology shape audiobook development?

Cassette

The cassette tape revolutionized audiobook consumption. For the first time, you could hear C.S. Lewis in his own voice, with his distinct British accent, presenting The Four Loves. This preserved the performance itself, unlike earlier times when someone else read the words of Paul. Cassette tapes held up to two hours of audio and retained your playback position across devices. You could listen in your car, take the tape home, and continue the story seamlessly.

CD

Then came compact discs (CDs), which were inferior for audiobooks in nearly every way. CDs held less audio and didn’t retain playback positions across devices. A book that fit on two cassettes might require four CDs, which increased production costs.

Audiobooks on CDs often cost $30 to $40, which was reasonable given the high cost of producing CDs.

I experienced this firsthand when I started an audiobook production company in college. It was my first business, launched from a business plan for my entrepreneurship class. We sold products and attended trade shows, but producing CDs was expensive and cumbersome, especially for books requiring multiple discs.

iPod

The iPod was a game-changer for audiobooks. A single iPod could hold an entire library, including a Bible that previously required 79 CDs! As iPods improved, became cheaper, and eventually merged into smartphones, the industry changed further.

You’re likely listening to this podcast on your phone right now. A podcast app on your phone, automatically downloads new episodes, allows playback speed adjustments, and remembers where you were at when you stopped listening last.

In-Car Listening

The ability to connect an iPod to a car was a significant advancement. While this technology existed over a decade ago, many people didn’t know how to use it or were unwilling to buy the necessary cables.

Modern car entertainment systems have simplified connectivity. Some new cars, like Teslas, use your phone as the key and automatically connect to audio when you get in. You can start the car without a physical key and play a podcast or audiobook with a voice command. This seamless integration is becoming standard, especially in luxury cars, and the technology is trickling down to more affordable models. This shift is transforming how people listen to audiobooks and podcasts.

Why has audio content consumption surged?

In 2018, audiobook and podcast listening in the United States reached 51%, marking a significant milestone. For the first time in history, more people have listened to an audiobook or podcast than have not. Audio content has crossed a critical threshold. If you have not yet listened to an audiobook, you are now considered a laggard rather than an early adopter. Most people have embraced this form of content consumption.

The demand for audio is higher than ever because it’s easy to use. With devices like iPods or iPhones and apps that play audiobooks or podcasts, the experience is far superior to handling discs or cassette tapes. It is a measurably better and cheaper experience. The cost of delivering audio has decreased significantly, eliminating the need to manufacture multiple CDs or hire editors to abridge a 300-page book into a 50-page version. The abridging process often diminished the quality of books, stripping away their essence.

Reduced Recording Costs

However, advancements have reduced both delivery and production costs for audio content. In the past, building an analog studio could cost $50,000 to $100,000, with expensive gear, mixers, microphones, and recording tapes. Recording itself was costly due to the need to purchase physical tapes.

Digital studios revolutionized audio production by lowering costs dramatically. Instead of spending $100,000 using a professional studio, a good studio could be built for $10,000. Home studios have further reduced costs. You can set up a home studio that produces sound quality comparable to more expensive systems for Just $150. For around $1,000, the audio quality can be nearly indistinguishable from high-end studios.

Actors across the country are building home studios, and audiobook narrators are now in nearly every town. The number of audiobook narrators has surged, which means you have many choices. If you are out of work, have a decent voice, and can read smoothly, you could earn significant income as an audiobook narrator. It is an ideal time to pursue this career. It requires no college education and minimal equipment costs.

What has driven the audiobook and podcast boom?

The plummeting costs of production and delivery have fueled a boom in both podcasts and audiobooks. In 2018, the amount of content added to Audible reportedly surpassed the total audio content available on the platform a decade earlier. This growth is driven by more companies and authors producing audiobooks and reflects an unprecedented rate of expansion.

How do audiobooks and podcasts differ?

Audiobooks are comparable to movies, with a defined beginning, middle, and end, high production values, and a complete experience. They aim to leave listeners satisfied, whether through emotional engagement in fiction or enlightenment in non-fiction.

Podcasts, however, are more like television. Ongoing episodes released regularly lack the same structured narrative arc as a movie.

The quality gap between podcasts and audiobooks is narrowing, much like the gap between movies and TV. For example, the TV show Agents of S.H.I.E.L.D., delivers a high-budget feel on a lower-budget television format and often depicts the aftermath of events in films like Thor.

Why is podcasting considered a unique medium?

Podcasting, despite seeming like a modern trend, is one of the oldest forms of digital media. It’s arguably the last remnant of Web 1.0 content. Unlike platforms like YouTube or Facebook, which are controlled by single entities Google or Meta, podcasting has no central hub.

This creates a direct relationship between podcasters and listeners, which is powerful, especially for groups like Christians whose messages may face censorship. The technology behind podcasts, rooted in the MP3 format, ensures digital freedom because these files do not report user data. Interestingly, Twitter, was initially launched as a podcasting company called Odeo but transitioned to a microblogging platform under Jack Dorsey.

Audio is not a fad but the original way humans encountered stories, predating written texts. While reading on paper has been common for thousands of years, audio storytelling around campfires is much older. The recent surge in audio’s popularity is due to its affordability and accessibility, not its novelty.

How can publishers and authors adapt to the demand for audio?

Audio’s popularity is growing rapidly, with audiobooks evolving from a $1 billion industry five or six years ago to over $2 billion today. It will likely reach $3 billion soon.

Podcasts are experiencing similar growth, with annual increases of 20 to 30%. To adapt, consider these five strategies:

1. Publish every book in audio. If a book is worth publishing, it is worth producing as an audiobook. If costs seem prohibitive, reassess your approach. If in-sourcing is not working, try outsourcing. If outsourcing fails, consider licensing or producing it yourself with outsourced production. Cost savings are significant, and failing to adapt means missing out on profits.
2. Negotiate audio rights carefully. Authors must secure audio rights effectively. An agent, such as those from the Steve Laube Agency, can help. Ideally, you want to ensure the publisher commits to producing an audiobook. If they do not, negotiate to retain audio rights so you can produce it yourself. Platforms like ACX allow authors to create audiobooks for free by matching them with narrators who split royalties, requiring no upfront costs.

By embracing these changes, publishers and authors can ride the wave of audio’s growing popularity, much like surfing, to capitalize on this booming market

Why is retaining audiobook rights important?

Poorly negotiated publishing deals, especially those that happen without an agent’s involvement, can lead to a situation where the publisher holds the audiobook rights without any obligation to produce an audiobook. This leaves your book in audiobook purgatory, where you are legally barred from creating the audiobook yourself and cannot compel the publisher to do so. You need to avoid that scenario.

In 2019, with the audiobook market growing rapidly and production costs dropping, there is no reason for a book not to exist in audio. Failing to produce an audiobook is akin to not publishing an e-book and leaves potential revenue on the table.

How can podcast tours boost book sales?

Publishing companies should equip their authors to go on podcast tours. Just as TV and audio promotions, like those for Marvel’s Agents of S.H.I.E.L.D., drive audiences to related movies, podcast appearances increase the likelihood of listeners buying an author’s book.

Podcast listeners consume audiobooks at twice the rate of non-podcast listeners, making them a prime audience for audiobook sales.

To ensure quality audio during podcast interviews, authors need decent equipment. For just $25, the Logitech H390 USB headset eliminates echo, a common issue when speakers and microphones are on the same device, such as during conference calls or live performances.

Echo occurs when audio loops back, creating feedback that can escalate into a high-pitched whine. This headset, which plugs directly into a laptop, prevents such issues. (see links below)

Why should authors start their own podcasts?

Helping authors launch their own podcasts, or encouraging aspiring authors to start one, is a powerful way to build a platform and reach an influential audience.

Podcast listeners tend to be wealthier, better educated, and more influential. Statistically, non-podcast listeners are less likely to share these traits. Limiting learning to reading alone restricts knowledge acquisition, whereas podcast listeners often combine listening with reading, which gives them an advantage.

Starting a podcast is now easier and cheaper than ever. In 2007, podcasting was cumbersome, requiring complex setups like looping audio through software such as Audio Hijack Pro. Today, a recommended microphone is the Audio-Technica ATR-2100x-USB, which costs around $70. This microphone delivers excellent sound, is used by many podcasters, and connects directly to a computer or a mixer, allowing it to grow with your podcasting needs.

Additionally, a good pair of headphones, like the Audio-Technica ATH-M30x (about $70) isolates sound and prevents echo, which is critical when using a microphone. Earbuds or laptop speakers can cause feedback, degrading audio quality. A scissor arm stabilizes the microphone and reduces noise from shocks or bumps. (See links below or check out the most current recommendations in my Podcast Gear Guide.)

How can advertising on podcasts benefit publishers?

Cultivating an ad network of mid-tier podcasts is a strategic move for publishers. Audible’s dominance in the audiobook market stems not just from its acquisition by Amazon but from its early success, driven by effective podcast advertising.

Christian podcasts dominate the podcasting landscape, with over 40,000 podcasts in the “Religion and Spirituality: Christianity” category on Apple Podcasts, outnumbering other categories like news or comedy by 10,000. This is largely due to churches posting sermons as podcasts, meaning most church-goers have likely listened to a podcast, even if they didn’t realize it. Non-sermon Christian podcasts also abound and offer untapped advertising opportunities.

Mid-tier podcasts, like the Christian Publishing Show, are often overlooked by big advertisers like Casper Mattresses or Audible. That means Christian publishers can advertise to a highly targeted audience inexpensively and effectively.

After a recent talk at the ECPA Leadership Summit, several attendees expressed interest in creating podcast ad networks. Some may be proprietary to publishing houses, while others could be open to all. Either way, they can match books with suitable podcasts.

How can indie authors create their own podcast ad networks?

Independent authors can create ad hoc advertising networks by directly contacting podcasts. Reach out to podcast hosts and ask, “Can I advertise on your podcast?”

Alternatively, see if they offer sponsorship opportunities through platforms like Patreon, where you can purchase a sponsorship level that includes ad placement. This guerrilla approach is not exclusive to large publishers; indie authors can also leverage it effectively.

More Proof…

The smart speaker market has grown by 187% in the past year, outpacing the adoption rates of televisions, personal computers, the internet, iPods, and smartphones. This is the fastest growth curve for any consumer electronics product. Despite privacy concerns about devices like Amazon Echo, many people already use voice assistants like Siri or Google, which listen to you constantly. Similar issues with your smart phone assistants receive less amedia ttention.

To understand this shift, you might consider purchasing an Amazon Echo Dot ($30) to explore how it changes content consumption.

Smart speakers allow users to buy and play audiobooks instantly by voice command, offering a seamless experience. They are also useful for podcasts, particularly short-form ones, which can be added to Alexa’s alongside weather, traffic, and news updates.

For example, the Pray Every Day podcast, is highly popular as an Alexa flash briefing. With Amazon’s 30-day return policy, you can try an Echo Dot and return it if you have privacy concerns.

How do podcasts drive audiobook sales?

A compelling example of podcast influence comes from Stan Jantz, president of the Evangelical Christian Publishing Association, who listened to an episode of the Building a Story Brand podcast, hosted by Donald Miller, featuring Ian Cron, author of The Road Back to You.

Impressed, Jantz bought the audiobook and recommended it to others. Weeks later, he spoke with Cory Verner, founder of ChristianAudio, who confirmed that the podcast was the primary reason The Road Back to You became their top-selling audiobook.

To capitalize on this trend, publishers and authors should embrace podcasts by subscribing, listening, and producing audiobooks. Subscribing to podcasts like the Christian Publishing Show ensures new episodes are delivered to your phone automatically. I recommended using Castbox, which works on both Android and iPhone.

I hope this helps you ride the wave of the growing audio trend, connect with audiences through podcasts and audiobooks, and ultimately boosts your book sales.

Recommended Gear

• Samson Q2U Microphone (Affiliate Link)
• Audio-Technica ATH-M20x Professional Studio Monitor Headphones (Affiliate Link)
• Neewer Adjustable Microphone Stand (Affiliate Link)
• Amazon Echo Dot (Affiliate Link)

Many of the above links are affiliate links. Also, the prices often fluctuate around the price listed.

Podcast Statistics

Podcast listeners are:

• affluent. 45% of monthly podcast listeners have a household income of over $75K – vs 35% for the US population.
• educated. 27% of US podcast listeners have a 4-year college degree – vs 19% for the US population.
• influential. 94% of podcast listeners are active on social media – vs 81% for the US population.

Audiobook Statistics

• Smart speakers are growing
  in popularity for audiobook listening. 24% of audiobook listeners
  say they have listened on a smart speaker.
• Millennials love audiobooks. Nearly half (48%) of frequent audiobook listeners are under 35.
• Podcast listeners are
  audiobook super readers. Listeners of both podcasts
  and audiobooks listened to twice as many audiobooks as non-podcast consumers.
• Fiction is more popular than
  non-fiction in audiobooks. 70.6% of audiobook sales
  are fiction.
• Digital audiobooks have
  replaced CDs as the dominant format. Only 5.8% of audiobook unit
  sales were on CD in 2017, down from 27.8% in 2013.

Source: Audiobook Publishers Association

Source: Audiobook Publishers Association

Source: Audiobook Publishers Association

Sources:

• https://www.edisonresearch.com/wp-content/uploads/2019/03/Infinite-Dial-2019-PDF-1.pdf
• http://www.edisonresearch.com/wp-content/uploads/2019/04/Edison-Research-Podcast-Consumer-2019.pdf
• https://www.statista.com
• https://blog.pacific-content.com/the-most-crowded-categories-in-apple-podcasts-7123447660cf
• https://www.audiopub.org/uploads/pdf/APA-FACT-SHEET-2018.pdf
• https://www.audiopub.org