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If someone without a KU sub buys an ebook the Author/Publisher gets 30% if less than $2.99 price (ex. VAT or sales Tax and delivery charges), otherwise 70%. If someone borrows on KU then Amazon pays nothing at first, unlike any other library loaning ebooks (who have to buy whatever number of simultaneous loans they offer, also in UK & Ireland there is a per loan royalty of about 35c). Amazon decide on a pot of money for KU and based on pages read on real kindle, kindle app (inc Fire), then eventually pay the Author/Publisher something. This only works with the eBook transferred direct to App or Kindle and Amazon monitoring your page turns later via Whispernet (Wifi or Cell/Mobile on the host of App or on eink Kindle). This system abuses content providers and privacy of consumers. What they should do is run a system like real libraries and Scribd do.
So if you remove the DRM on a KU title, and have it as a sideloaded book, no pages are ever read and no-one gets paid from the pot that is part of the KU subscription income.
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