Quote:
Originally Posted by Daithi
Why would Amazon do this? Think about it for a second. Amazon is currently paying authors/publishers 35% and keeping 65%, but now they're announcing they will keep 30% and give the authors/publishers 70%. Why would Amazon slash their own profit margins? Furthermore, will this move make the publishers happy?
Well, let's take a look at the numbers.
Here are the numbers for a typical book using the existing 65/35 payout structure.
List Price:________$28.00 (35% is $9.80)
Pbook Retail Price:_$15.00 (So publisher/author gets $9.80 and Amazon gets $5.20)
Ebook Retail Price:__$9.99 (So publisher/author gets $9.80 and Amazon gets $0.19)
Here are the numbers for the new 30/70 payout structure.
List Price:________$28.00 (35% is $9.80)
Digital Price:_______$9.99 (70% is $6.99)
Pbook Retail Price:_$15.00 (So publisher/author gets $9.80 and Amazon gets $5.20)
Ebook Retail Price:__$9.99 (So publisher/author gets $6.99 and Amazon gets $2.00)
Cleary the publishers are now making LESS money with ebooks if they switch to this new payout structure. However, Amazon is still retaining the old payout structure, so most publishers will just stay on the old system. So why is Amazon doing this if publishers won't sign up? Because Amazon is going after the authors.
Make no mistake about, baby -- Amazon just declared war!
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I agree 100%. And it's a war the publishers can't win in the end. They just don't have the digital presence or anybody working for them who can get them some of that juicy digital presence. There's got to be a lot of authors whose back catalog is no longer in print, or whose contracts are about to be renewed who are looking at this right now with big Cheshire Cat smiles on their face.
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An internal monologue with a moderately successful writer about to renew his publishing deal.
So, I get what, 5-10% and zero marketing, plus you take all my digital rights until I'm too stupid, old or dead to care about them...or....I take 70%...I take 70%....70....percent...with Amazon?
At this point the author runs away yelling 'whoopee!' at the top of their lungs.
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This isn't a War, the publishers would actually have to have enough troops to fight back. This is a rousting!
Let the games begin!