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Originally Posted by howyoudoin
This is the sort of reasoning that can be applied to anyone and everything. How does Amazon/Apple/Kobo log ebook sales? When I purchase a book, do they log it and report it to the publisher/author or do they just send me a copy of the ebook and pocket my money by hiding the data from the publisher/author?
People did not pose these questions when it came to book sales. Why pose them now with regard to book lending? What makes the situations so different? It's still the vendor who controls the data in both cases. We were willing to take them on face value and assume that our money reaches the publisher when we purchased books online. Why the ruckus when it comes to borrowing from the exact same vendors?
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I think it's this 10% rule that makes the difference. Simplicity states that if a book is borrowed/purchase, the author gets paid. Period. That's how purchasing or borrowing a book works. Amazon have changed the rules. Add to this that some authors are reporting a drop in revenues AND the 10% rule seems to favor Amazon (i.e. because of it, they pay out less), then it is natural to scrutinize this change.