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Old 07-25-2013, 07:11 PM   #9
fjtorres
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Quote:
Originally Posted by Teknikal View Post
Sadly my guess is the authors will be the ones losing out financially it wouldn't surprise me if it didn't effect the publishers at all or even made them slightly better off.
There have been lots of breakdowns and estimates of how much money authors lost due to the conspiracy but nobody knows for sure (outside the publishers, and maybe not even there) because the royalty is based on "net" and that is defined as the publishers choose.

More, some authors never get significant ebook royalties to start with; they signed away most of their ebook royalties (down to the 4% range) in return for a couple extra points of pbook royalties.

Edit: Check this:
http://aardvarknow.us/2013/06/04/e-b...always-denied/

Quote:
Look at Harper’s own numbers:

$27.99 hardcover generates $5.67 profit to publisher and $4.20 royalty to author

$14.99 agency priced e-book generates $7.87 profit to publisher and $2.62 royalty to author.

So, in other words, at these average price points, every time a hardcover sale is replaced by an e-book sale, the publisher makes $2.20 more per copy and the author makes $1.58 less. If the author made the same $4.20 royalty on the e-book sale as he/she would have on a hardcover, the publisher would STILL be making an improved profit of $6.28.
BTW, under the Wholesale (pre-agency model) and 50% discount, that same ebook would bring in $14 from the retailer; $10.50 for the publisher and $3.50 for the author (assuming no creative accounting).

Last edited by fjtorres; 07-25-2013 at 07:24 PM.
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