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Print 21 comment(s) - last by OKMIJN4455.. on Jan 24 at 6:37 AM

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: Hmmm get them hooked now!
By phattyboombatty on 1/20/2010 5:31:09 PM , Rating: 2
Congratulations. You've offered up some of the most backward logic I've ever seen. Your argument is that authors shouldn't take this great deal because in the future it won't be available.
That's the same as somebody arguing, "Why would anyone ever buy this HDTV for $599 on Black Friday? Don't they know that after Black Friday it will jump in price to $699 until Christmas, and then go back to its regular price of $799 after the new year?"


RE: Hmmm get them hooked now!
By jabber on 1/21/2010 6:24:56 AM , Rating: 1
No it's just a ploy to get people signed up.

Banks use it all the time.

They offer a great savings account with 7% interest. Then every year it drops 1% till its worth next to nothing.

However by then then there could be another large enough e-reader publisher that will offer so folks will switch their next book to that and so on.

It's called churn. As I said it's too good to be true to be anything else.

Next year there will be a big stink because Amazon increases its cut.


RE: Hmmm get them hooked now!
By jabber on 1/21/2010 6:30:06 AM , Rating: 2
Essentially - Caveat venditor!

By all means folks should sign up for such a deal initially but they shouldnt expect it to last for any great period of time.

Amazon needs to push this and will do everything it can to attract people but it won't last.


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