Register Guidelines E-Books Search Today's Posts Mark Forums Read

Go Back   MobileRead Forums > E-Book General > News

Notices

Reply
 
Thread Tools Search this Thread
Old 07-17-2014, 02:08 PM   #1
fjtorres
Grand Sorcerer
fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.
 
Posts: 8,049
Karma: 61732902
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: PRS-T1, KT, PB701/IQ, K2, PB360, BeBook One, Axim51v, TC1000
July AUTHOR EARNINGS report brings focus on DRM

As expected, the third Author Earnings report is out.

http://authorearnings.com/july-2014-...rnings-report/
Among the expected focus on publishing path data, this time they looked at the prevalence and effect of DRM on Kindle ebooks:

Quote:

DRM – A Bad Idea

In addition to our standard pie charts on sales and earnings, we always like to bring something new and interesting to each report. Last time, we looked at rates of churn on the bestseller lists. We have also previously looked at the vast income difference between tenured and debuting authors. This time, we pulled data for DRM, and what we found was very interesting.

Digital Rights Management, or DRM, is the encryption lock applied to electronic entertainment. The film, music, video game, and book industries all employ DRM. With ebooks, DRM poses little challenge to pirates, who can crack these locks with a few clicks. Meanwhile, for the paying customer, DRM makes it difficult to move ebooks between devices and traps readers into a single retail channel.

DRM is entirely optional on Amazon. Major publishers and self-published authors can opt out of DRM. We pulled DRM info on the 120,000 ebooks currently ranked on Amazon to see how often it was applied and if DRM had any effect on sales.

It wasn’t surprising to see that most Big 5 books employ DRM, but we were shocked to see that it is practically 100% of them. Indies, on the other hand, locked down roughly 50% of their titles. Since there isn’t any variation in the Big 5 books, we are forced to look at the self-published titles for any effect on sales, and indeed there is one. The 50% of non-DRM ebooks account for 64% of total unit sales.

Indie titles without DRM sell twice as many copies each, on average, as those with DRM.
Quote:

At almost every price point, we see the thousands of titles without DRM significantly out-earning the thousands of titles with DRM. In fact, at the only two price points that appear to buck the general trend and which show DRM titles outselling non-DRM ones, we found that the reversal was due to 3 outlier DRM titles published by only two authors.

What our data strongly suggests is that DRM harms ebook sales at any price point. And it backs up a report from Tor, one of the few major publishers that gave up DRM two years ago. It also reinforces this report on DRM’s effect on music sales. Interestingly, one of the Big 5 publishers urged authors to push back on Tor’s decision to get rid of DRM.
For those with short memories, this two year old column discusses the "pushback" campaign referenced in the extract:

http://www.publishersweekly.com/pw/b...wn-on-drm.html

There is way, way more at the source, highlighting how BPH ebooks constitute only 16% of Kindle's top 120K sellers, and how it turns out indie publishing works fine for less popular genres like litfic and non-fiction.

Reach for the muchies; plenty of fireworks incoming in the next few days.
fjtorres is offline   Reply With Quote
Old 07-17-2014, 04:59 PM   #2
stormcloude
Zealot
stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.stormcloude ought to be getting tired of karma fortunes by now.
 
stormcloude's Avatar
 
Posts: 126
Karma: 241577
Join Date: Feb 2009
Location: Socal
Device: eBookwise 1150, Sony PRS-505, Sony PRS-T1
Thanks for sharing this. It's not something I'd have come across otherwise.
stormcloude is offline   Reply With Quote
 
Advertisement
Old 07-17-2014, 05:34 PM   #3
Catlady
Wizard
Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.Catlady ought to be getting tired of karma fortunes by now.
 
Catlady's Avatar
 
Posts: 3,132
Karma: 9183944
Join Date: Oct 2010
Device: jetBook Lite, Libre Color
I'm not sure I see what this proves or disproves about DRM. I've only read what was quoted here, and it's interesting, but books aren't interchangeable commodities. There are so many variables beyond the presence or absence of DRM that affect a purchase decision.
Catlady is offline   Reply With Quote
Old 07-17-2014, 05:59 PM   #4
DrNefario
Wizard
DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.DrNefario ought to be getting tired of karma fortunes by now.
 
DrNefario's Avatar
 
Posts: 1,378
Karma: 4266846
Join Date: Jan 2012
Location: UK
Device: Kindle, Kobo Touch, Nook SimpleTouch
I'm kind of surprised anyone really notices DRM on the kindle store. If indeed they do, and it isn't just down to the fact that the good indies don't use DRM, or something. ("Not Using DRM Improves the Quality of Your Writing.")
DrNefario is offline   Reply With Quote
Old 07-17-2014, 07:41 PM   #5
fjtorres
Grand Sorcerer
fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.
 
Posts: 8,049
Karma: 61732902
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: PRS-T1, KT, PB701/IQ, K2, PB360, BeBook One, Axim51v, TC1000
They're only claiming correlation, not actual causation.

DRM-free titles earning twice as much as the DRM'ed ones could simply be an indication that business-savvy publishers, the ones who know how to promote their titles effectively, also know that DRM does nothing meaningful for them. It does, however, allow for TTS, simultaneous reading on unlimited multiple devices, and easy conversion to non-Kindle devices. All of which add marginal value to consumers.

So it says nothing about the quality of the book itself but it says a bit about the publisher.
In any industry, there is a body of knowledge of "best business practices" that correlate with success even when they don't always cause it or guarantee it. DRM-free might be in that category, not a guarantee of quality or success but it clearly doesn't hurt.

Last edited by fjtorres; 07-17-2014 at 07:50 PM.
fjtorres is offline   Reply With Quote
Old 07-18-2014, 01:19 AM   #6
theducks
Grand Sorcerer
theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.theducks ought to be getting tired of karma fortunes by now.
 
theducks's Avatar
 
Posts: 15,222
Karma: 5940081
Join Date: Aug 2009
Location: (The original) Silicon Valley, USA
Device: Galaxy Tab 2, Astak Pocket Pro, K4NT
Could part of the better earnings be that there is no per book DRM License fee being paid?
theducks is offline   Reply With Quote
Old 07-18-2014, 01:30 AM   #7
fjtorres
Grand Sorcerer
fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.
 
Posts: 8,049
Karma: 61732902
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: PRS-T1, KT, PB701/IQ, K2, PB360, BeBook One, Axim51v, TC1000
Quote:
Originally Posted by theducks View Post
Could part of the better earnings be that there is no per book DRM License fee being paid?
There is no DRM tax on Kindle.
Amazon owns their tech lock, stock, and barrels.
The better earnings are coming from better sales.

Makes the correlation interesting...
fjtorres is offline   Reply With Quote
Old 07-18-2014, 01:48 AM   #8
Fbone
Is that a sandwich?
Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.Fbone ought to be getting tired of karma fortunes by now.
 
Fbone's Avatar
 
Posts: 5,476
Karma: 68927069
Join Date: Jun 2010
Device: Searching ...
How do they know if a Kindle book has DRM or not?
Fbone is offline   Reply With Quote
Old 07-18-2014, 01:50 AM   #9
crossi
Guru
crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.crossi ought to be getting tired of karma fortunes by now.
 
Posts: 650
Karma: 2620138
Join Date: Nov 2009
Location: Seattle Wahington U.S.
Device: kindle
Quote:
Originally Posted by Catlady View Post
I'm not sure I see what this proves or disproves about DRM. I've only read what was quoted here, and it's interesting, but books aren't interchangeable commodities. There are so many variables beyond the presence or absence of DRM that affect a purchase decision.
If you are comparing two books, one with DRM and one without, better sales for the non-DRM'd book would not tell you if the better sales were due to the lack of DRM, a better book, more publicity or other cause. Comparing 120,000 books whose only difference is the presence or lack of DRM the other variables tend to average out. Maybe all the non-DRM'd books all had something else in common that none of the DRM'd books did that was increasing their sales but that seems unlikely. In any case have you heard of any individual choosing not to buy a book because it didn't have DRM? I have heard of the opposite case.
crossi is online now   Reply With Quote
Old 07-18-2014, 07:38 AM   #10
fjtorres
Grand Sorcerer
fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.
 
Posts: 8,049
Karma: 61732902
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: PRS-T1, KT, PB701/IQ, K2, PB360, BeBook One, Axim51v, TC1000
Quote:
Originally Posted by Fbone View Post
How do they know if a Kindle book has DRM or not?
Amazon tells you.

"Simultaneous Device Usage: Unlimited"

Like here: http://www.amazon.com/gp/product/B00...rd_i=154606011
fjtorres is offline   Reply With Quote
Old 07-18-2014, 08:16 AM   #11
gmw
cacoethes scribendi
gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.
 
gmw's Avatar
 
Posts: 2,242
Karma: 69173465
Join Date: Nov 2010
Location: Australia
Device: Sony650
It is interesting to have some actual numbers around the DRM issue for a change. Obviously there's lots of stuff we'd all like to know that doesn't exist in this data, but they are still reassuring results for all not using DRM.
gmw is offline   Reply With Quote
Old 07-18-2014, 08:21 AM   #12
wizwor
Wizard
wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.wizwor ought to be getting tired of karma fortunes by now.
 
wizwor's Avatar
 
Posts: 1,031
Karma: 22550803
Join Date: Nov 2011
Device: kindle, fire
Quote:
It wasn’t surprising to see that most Big 5 books employ DRM, but we were shocked to see that it is practically 100% of them. Indies, on the other hand, locked down roughly 50% of their titles. Since there isn’t any variation in the Big 5 books, we are forced to look at the self-published titles for any effect on sales, and indeed there is one. The 50% of non-DRM ebooks account for 64% of total unit sales.
I believe the term is cherry picking. Whether the titles are Big 5 or not is not a factor. The fact is that DRM has not impeded their sales -- which dwarf indie sales -- and overall DRM does not impact sales.
wizwor is offline   Reply With Quote
Old 07-18-2014, 08:40 AM   #13
fjtorres
Grand Sorcerer
fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.
 
Posts: 8,049
Karma: 61732902
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: PRS-T1, KT, PB701/IQ, K2, PB360, BeBook One, Axim51v, TC1000
Quote:
Originally Posted by wizwor View Post
Whether the titles are Big 5 or not is not a factor. The fact is that DRM has not impeded their sales -- which dwarf indie sales -- and overall DRM does not impact sales.
1- Yes, it is a factor. BPH titles normally sell in a different pricing band ($8-15) than indies and small/mid presses ($3-10. And if DRM were not an issue, why did Hachette throw the hissy fit when Tor went DRM-free?

2- The only metric where the BPHs "dwarf" indie ebook sales is reader spend. Unit sales are comparable and author income favors indie over BPH.

Again, they aren't claiming DRM has a causal link with sales, just that it correlates with it.

Edit: http://en.m.wikipedia.org/wiki/Corre...mply_causation

Last edited by fjtorres; 07-18-2014 at 08:46 AM.
fjtorres is offline   Reply With Quote
Old 07-18-2014, 08:45 AM   #14
gmw
cacoethes scribendi
gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.gmw ought to be getting tired of karma fortunes by now.
 
gmw's Avatar
 
Posts: 2,242
Karma: 69173465
Join Date: Nov 2010
Location: Australia
Device: Sony650
Quote:
Originally Posted by wizwor View Post
I believe the term is cherry picking. Whether the titles are Big 5 or not is not a factor. The fact is that DRM has not impeded their sales -- which dwarf indie sales -- and overall DRM does not impact sales.
I am willing to believe that DRM is not a significant factor in sales overall, there may be other factors influencing the results when isolated by indie. But that in itself is interesting, don't you think?
gmw is offline   Reply With Quote
Old 07-18-2014, 08:52 AM   #15
fjtorres
Grand Sorcerer
fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.fjtorres ought to be getting tired of karma fortunes by now.
 
Posts: 8,049
Karma: 61732902
Join Date: May 2009
Location: 26 kly from Sgr A*
Device: PRS-T1, KT, PB701/IQ, K2, PB360, BeBook One, Axim51v, TC1000
Quote:
Originally Posted by gmw View Post
But that in itself is an interesting, don't you think?
To some of us, apparently.

My read is that indie publishers that are effective in driving sales of their titles tend to go DRM-free. And that, like Tor, going DRM-free doesn't seem to be hurting them.

Absent any actual direct pro or con causal data, a rational publisher would take this report as a hint to go DRM-free.
fjtorres is offline   Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
More Author Earnings Waylander General Discussions 6 05-27-2014 02:36 PM
Hugh Howey presents: Nook Author Earnings fjtorres News 7 03-01-2014 01:50 PM
Adobe brings new DRM, problems for most of us arturg General Discussions 2 02-06-2014 08:00 AM
Romance Author Earnings Daithi News 1 03-02-2010 05:19 PM
Report from Random House UK Ebook Focus Group 8th July 09 ec1matt News 5 07-08-2009 07:17 PM


All times are GMT -4. The time now is 07:51 AM.


MobileRead.com is a privately owned, operated and funded community.