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Originally Posted by Hemmi
I got this nugget from an author's newsletter today "This morning I was notified that Barnes&Noble is struggling to meet its expenses and can't make this month's royalty payments"
She's taking down her ebook preorders and pulling most of her catalog from B&N.
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They're not paying the big aggregators: Smashwords or Draft2Digital:
https://the-digital-reader.com/2020/...oney-problems/
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Do you want to know how small fry the Nook is to B&N?
In B&N's last fiscal year, Nook revenues, including both hardware and content sales, totaled $92 million, while revenues for the fiscal year totaled $3.6 billion.
That is not a lot of money when divided into monthly payments, which is even more worrisome. A back of the envelope calculation suggests that Nook royalty payments for February are in the ballpark of $3 to $4 million.
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Seasonality plays into it a bit: feb is one of the slowest months for ebook sales.
And it was before the crisis led to the closures so they still had B&M revenues.
https://www.smashwords.com/about/updates
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April 20, 2020 - Barnes & Noble is having cash flow issues due to Covid-19, and delaying payments to suppliers. This means that this month's round of payments, which we are processing today, will *not* include February sales at Barnes & Noble. Per our Terms of Service, we pay our authors and publishers based on what the retailers pay us. Other Smashwords retailers and library partners are current with their obligations, which means this only affects your B&N portion of accrued earnings. In the next couple days I'll send an email update to all Smashwords authors and publishers because not everyone follows these Site Updates.
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Moving forward, things won't get better for march or april payments: Those 400 closed storefronts still have to pay rent.