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New royalty rate is 70% minus delivery fees

Amazon helped bolster the eReader craze that is sweeping the globe today. Its Kindle wasn't the first eReader, but the new features and pricing of the eReader combined with the backing of the Amazon Digital Book store made the Kindle the most appealing eReader to hit the market.

Amazon is actively growing the library of digital book that are available on the device and recently it upgraded the Kindle DX with global wireless connectivity. Shortly after announcing the upgrade, Amazon also announced that it was opening its Kindle Digital Text Platform (DTP) to countries other than the U.S. and accepting books in English, German, and French languages.

Amazon announced today that it is now willing to share a higher royalty fee with authors and publishers who use the DTP. The new royalty fee is 70% of list price after removing delivery costs. Amazon points out that the new 70% program is in addition to the standard DTP royalty option already in place. The new 70% option will be available for publishers starting on June 30.

Delivery costs of the books are based on a price of $0.15 per MB meaning that the average 368KB book would cost about six cents to deliver. Amazon uses a book selling for $8.99 as an example. Under the current program, a book selling for $8.99 will get the author $3.15 per sale; the new program would get the author $6.25.

“Today, authors often receive royalties in the range of 7 to 15 percent of the list price that publishers set for their physical books, or 25 percent of the net that publishers receive from retailers for their digital books,” said Russ Grandinetti, Vice President of Kindle Content. “We’re excited that the new 70 percent royalty option for the Kindle Digital Text Platform will help us pay authors higher royalties when readers choose their books.”

There are numerous requirements to qualify for the new rate program. The price must be between $2.99 and $9.99 per book. The price must also be at least 20% below the price for a physical copy of the same book. The book has to be published in all parts of the world where the author or publisher has rights. The book has to be included in a broad range of Kindle features. Books published before 1923 will not qualify for the program and only books sold in America will be allowed in the program.



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RE: Apple
By namechamps on 1/20/2010 11:55:15 AM , Rating: 2
Kindle & iSlate arent the same market segment.

The Apple Tablet is likely going to be $800+ more likely it will be $1000+.

The Kindle is $249. I expect a cut to $199 in response to Apple. By Christmas it will be $149. In a couple years as economies of scale work up on eink the kindle and other readers will be $99. Eventually we will see "free" readers like cellphones today (prepay for $200 in books get free reader).

That isn't to say Apple won't sell millions of tablets. They will but it is a different market segment.


RE: Apple
By Spivonious on 1/20/2010 12:33:40 PM , Rating: 2
Why are people acting like Apple is "inventing" the tablet PC? It's been around since 2001.


RE: Apple
By Smartless on 1/20/2010 1:48:22 PM , Rating: 2
Same reason Ipod is now synonymous with mp3 players. Popular culture will sometimes overlook the real innovaters. The same popular culture that crapped American Idol.


RE: Apple
By AEvangel on 1/20/2010 2:16:31 PM , Rating: 2
quote:
The same popular culture that crapped American Idol.


Amen to that..


RE: Apple
By acase on 1/20/10, Rating: 0
RE: Apple
By Solandri on 1/20/2010 4:54:57 PM , Rating: 2
Well, they did come up with the idea of a computer you carry around in your hand and write on with a pen. It was probably big enough to qualify as a tablet by today's standards.

http://en.wikipedia.org/wiki/Newton_%28platform%29


RE: Apple
By Oregonian2 on 1/20/2010 3:07:25 PM , Rating: 2
It also will be interesting if the Apple Tablet will run with the screen lit for a lot of the day and still go a couple weeks between battery charges.

:-)


RE: Apple
By Gul Westfale on 1/20/2010 10:24:56 PM , Rating: 3
quote:
That isn't to say Apple won't sell millions of tablets. They will but it is a different market segment.


yes, the mentally challenged are a different market, but i've never heard it being said in such polite terms.


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