Amazon announces a 70 percent royalty option

[phenomshel]

Originally Posted by eGeezer

Isn't that when Al Gore says something that is factual?

No, that's an oxymoron!

[fugazied]

Yeah this is very big news for the publishing industry. Cue conspiracy theories, has Amazon heard that the Apple tablet is coming out and a number of publishers are already in the process of integrating with itunes for the launch?

If there's one thing Amazon knows about Apple from their mp3 sales is that the itunes store is tough to compete with (huge customer base and publicity). Amazon could be seeking to make a more appealing alternative for authors/publishers already?

[Daithi]

Originally Posted by BearMountainBooks

Actually, the clause states that the ebook price should be 20 percent lower than the lowest print copy (they are taking into account hardback or trade or mass market).

I think you are misinterpreting what I said. When I said "the same" I meant the process was the same, and not that the list price and the digital list price would be the same.

The point I was trying to make (apparently not very well) was that I believed prices of books sold to Amazon and to Amazon's competitors should be the same.

[BearMountainBooks]

Originally Posted by Daithi

I think you are misinterpreting what I said. When I said "the same" I meant the process was the same, and not that the list price and the digital list price would be the same.

The point I was trying to make (apparently not very well) was that I believed prices of books sold to Amazon and to Amazon's competitors should be the same.

OH. Well if that's what you said, then yeah. I agreed. Just because I didn't read it right, doesn't mean you didn't say it right!!!

[darius]

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?

....

Amazon just declared war!... against Apple

FYP

Amazon is only preempting Apple's announcement next week when they will announcement the same 30/70 split that they use succesfully on the Appstore and iTunes. This is the ONLY reason they are doing this. Competition and hallelujah for that.

Publishers are going to feel the pinch, when all is said and done they are the middlemen who connect the authors with the reading public. Create a profitable low cost distribution system and the age of the publisher could be soon extinct.

[nekokami]

Originally Posted by pdurrant

I note that to be eligible for 70%, the title must enable text-to-speech. I wish they'd also insist on DRM-free.

I entirely agree.

Originally Posted by Moejoe

Who'd a thunk gay-hating, closeted, DRM ridden, greedy corporatists like Amazon would ever be the ones to be on the author's side.

Let's not go there, please. Even with a smiley.

Originally Posted by BearMountainBooks

Oh--those of you talking about DRM--it is up to the publisher whether to include DRM. Their current upload process allows me and other authors to opt out of DRM.

Is that so? I'd heard other authors complain that they didn't want to distribute through Amazon because they'd been told they would be forced to use DRM.

Originally Posted by darius

Publishers are going to feel the pinch, when all is said and done they are the middlemen who connect the authors with the reading public. Create a profitable low cost distribution system and the age of the publisher could be soon extinct.

So long as editors don't become extinct. I am still firmly of the opinion that a good editor is critical to the writing/publishing process.

[Daithi]

Originally Posted by darius

FYP

Amazon is only preempting Apple's announcement next week when they will announcement the same 30/70 split that they use succesfully on the Appstore and iTunes. This is the ONLY reason they are doing this. Competition and hallelujah for that.

Publishers are going to feel the pinch, when all is said and done they are the middlemen who connect the authors with the reading public. Create a profitable low cost distribution system and the age of the publisher could be soon extinct.

This simply isn't true. Amazon's current system is paying publishers more than they would get under the new 70/30 system.

Keep in mind that 35% of a book with a list price of $28 (a typical list price for a hardcover) is higher than 70% of $9.99.

I think this has more to do with fighting back against publishers that have decided to delay the release of ebooks.

[Kali Yuga]

Originally Posted by Daithi

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.

[starrigger]

Originally Posted by BearMountainBooks

Oh--those of you talking about DRM--it is up to the publisher whether to include DRM. Their current upload process allows me and other authors to opt out of DRM.

This is true of the DTP system offered to individual authors and small publishers. It is not true of the upload system used by larger publishers. E-reads, for example, which embraces DRM-free multiformats in other stores, has no choice but to accept DRM in the Kindle store. (And, for that matter, the Sony store. And probably the B&N store.)

[Daithi]

Originally Posted by Kali Yuga

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.

I think you are right about different tiered systems. It is my understanding as well that Amazon has different arrangements between smaller publishers that publish through DTP and major publishers such as Random House.

However, the major publishers get an even better deal than the small publishers. So if the existing system, based on 35% of List Price is better for smaller publishers then you can be assurred that it is even better for the bigger publishers. As far as I can tell, the only people Amazon is offering a carrot is the authors that dump their publishers (at least in regards to ebooks).

[BearMountainBooks]

Quote:
Originally Posted by BearMountainBooks View Post
Oh--those of you talking about DRM--it is up to the publisher whether to include DRM. Their current upload process allows me and other authors to opt out of DRM.
Is that so? I'd heard other authors complain that they didn't want to distribute through Amazon because they'd been told they would be forced to use DRM.
ENDQUOTE

It is a new "feature" that became available in the last couple of weeks (there was no announcement that I know of, but it's a new button that authors are talking about) So you are correct--in the old system, anyone uploading was automatically DRM. Now you can opt either way.

I'm not quite clear on books that are already published. Some authors are finding that they can "republish" with DRM or without, but the location of the option is not...always easy to find.

[llreader]

This seems like good news. I am interested in the idea that they adopted this because Apple is going to make the same offer next week. And text-to-speech? Is Apple going to make iTunes your spoken-word library, too?

It will be interesting to see how this affects the deal they have with Smashwords.

[charleski]

Originally Posted by Daithi

I think this has more to do with fighting back against publishers that have decided to delay the release of ebooks.

Yeah, it's round 3 of Amazon's fight to monopolise the publishing business. They obviously believe they have a large enough presence now (which may be true) to start putting the screws on.

The real question now is whether Apple's device makes a splash as an ereader. If it does, Amazon runs the risk of publishers relegating Kindle releases to 2nd-tier status.

The announcement is certainly good news for established authors with digital rights to their back-catalogue, and for smaller publishers who charge under $10 anyway. As for new authors who think self-publishing with Amazon is now the road to riches - well, good luck with that...

[ahi]

Originally Posted by Moejoe

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.

--------------

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.

---------------

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!

So much uninsightful speculation by people who clearly haven't the first idea what they are talking about...

- Ahi

[Moejoe]

Originally Posted by ahi

So much uninsightful speculation by people who clearly haven't the first idea what they are talking about...

- Ahi

Is there a moderator around, because I'm not going to do this behind anybody's back. But surely what he just posted contravenes all the rules on etiquette around here (even with a thumbs up). It's a personal attack, and I'd like to report it out in the open instead of being some sneak about it (because I've been on the end of those enough times).