Thread: Amazon announces a 70 percent royalty option
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Old 01-20-2010, 08:41 PM   #53
Kali Yuga
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Quote:
Originally Posted by Daithi View Post
This simply isn't true. Amazon's current system is paying publishers more than they would get under the new 70/30 system.
I may be wrong, but I believe Amazon has a two-tiered structure. The Digital Text Platform (DTP) is for small and self-publishers. Larger publishers are on a different system altogether, where they set the wholesale prices. E.g. I don't think Amazon can arbitrarily decide to discount DTP texts and just eat the cost differential, which they do routinely with certain bestsellers.

I expect it has more to do with using the carrot rather than the stick to make $9.99 the ceiling for ebook pricing, as well as just getting more people and small publishers to use DTP.

I also doubt Amazon has all that much to fear from Apple, since they can likely knock out a "Kindle for iSlate" or whatever it is (if it actually exists) with full Whispernet integration fairly quickly.
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