Amazon kind of, sort of matches iTunes 70/30 revenue split for ebooks
It had been speculated that an Apple tablet would force the world’s number one book seller to change the terms it offers publishers and that appears to have already happened. So, even if Steve Jobs’ “latest creation” fails utterly as an ebook reader, it’s already a huge success in the eyes of writers and publishers.
Computer Reseller News reports that Amazon has changed the terms it offers writers and publishers, a split familiar to music, television, movie and app publishers on Apple’s industry-defining iTunes Store, 70/30.
However, this isn’t a straight play and there are caveats. For example, whereas Apple partners get a straight 70 percent cut, Amazon doesn’t divvy up the proceeds until after “costs” have been paid.
Further, the online bookseller demands the following:
• Book’s list price must fall between $2.99 and $9.99 and be at least 20 percent below the lowest price of the physical edition of the book
• The Amazon price must be the same or less than at competing ebook sellers
• The ebook version must be offered everywhere the author or publisher has intellectual property rights
Although these terms don’t meet the standard previously set by Apple, they’re much better than Amazon previous forced writers and publishers to accept. For example, on an $8.99 title, authors previously only made $3.15 but will soon get $6.25.
That said, Amazon’s new terms don’t come into effect until June, which is probably when they expect Apple’s Kindle killing tablet to begin shipping.
The words “cynical” and “cheap” leap to mind…
What’s your take?
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January 21st, 2010
If small tablets take-off (like the suggested iSlate from Apple and other competing products), I cannot see eReaders surviving.
January 26th, 2010
Competition helps. In this case it will also allow more price flexibility. If lower prices bring more volume, buyers of books should gain also.