Amazon bumps ups publisher royalties

TechCrunch
Publishers who meet a specific set of criteria with their Kindle e-books will now be eligible to receive 70 percent of the revenue from each digital copy sold, minus Amazon’s delivery costs for the content.

Robin Wauters reports that the new profit split will only be available on books that meet a specific set of criteria:

  • “The author or publisher-supplied list price must be between $2.99 and $9.99.
  • “The list price must be at least 20 percent below the lowest list price for the physical book.
  • “The title is made available for sale in all geographies for which the author or publisher has rights.
  • “The title will be included in a broad set of features in the Kindle Store, such as text-to-speech. This list of features will grow over time as Amazon continues to add more functionality to Kindle and the Kindle Store.
  • “Under this royalty option, books must be offered at or below price parity with competition, including physical book prices.”

The new royalty structure for Kindle books is almost a reverse of the current standard option, which has 35 percent of each sale going to the publisher and 65 percent to Amazon. The new system was first announced in January and was seen at the time as a preemptive strike against Apple’s iPad and iBooks announcement.

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