Quote:
Originally Posted by fjtorres
Subscription services, if done right, are supplements to sales channels, not replacements. On both the music and video sides there are restrictions, windows, and limits designed to prevent cannibalization while still offering value to consumers. In general, the video guys have done a better job of carving out a revenue-enhancing niche alongside the older distribution systems than the music guys but they also have an easier job; they started with a stable well-structured system and hadn't sat still for two decades milking one format.
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There's a major difference between the video and music industry on the one hand and publishing on the other. Authors have only book sales as a source of income. Movies generate cash in theaters and through licensing to TV networks. Bands can earn cash by touring or selling merchandise. What I constantly hear from indie bands is they no longer make any money through album sales. And I don't mean dudes jamming in their garage.
Seeing the
plummeting of album sales over the last decade, it's hard for me not to make a correlation with free music being now widely available on YT and Spotify.
Quote:
Originally Posted by fjtorres
I'll be wanting to see what terms Amazon cooks up on both ends of the service to balance out both reader and publisher interests but the second thing that caught my eye in the promo video is the exploration/discovery angle.
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As opposed to a subscription models like Oyster which pays publishers a fair 60% of the list price after the first 10% read, Amazon opted for the peanuts they draw from Select's pooled funds. So there you go.