Amazon and Hachette settled their months-long dispute over e-book prices.
The agreement includes incentives for Hachette when the publisher chooses to deliver lower e-book prices to customers.
Simon & Schuster reached an agreement with Amazon last month, which also included an incentive for delivering lower e-book prices to customers.
How low? That’s a good question.
Kindle Direct Publishing (KDP) has provided such an incentive for years: e-books prices above $9.99 pay a royalty of 35%, whereas book prices between $2.99 and $9.99 pay a royalty of 70% (minus delivery costs).
The terms are no doubt different for the big publishers. The percentages won’t be the same, for one. But the KDP model offers some idea for what to expect.
Don’t expect bestselling traditionally published e-books to dive down to $2.99 or 99 cents. I’m thinking closer to $9.99.
- The readers win with more affordable e-book prices. The readers are most important, as the entire business fails to exist without them.
- The big publishers win with incentives to offer lower e-book prices. In addition to the incentives, it may actually be a more profitable business model; if so, that will be an added bonus.
- Traditionally published authors win, too. In addition to the publishers’ incentives for lower e-book prices and perhaps reaping greater overall royalties as a result, Hachette titles will now “be prominently features in promotions,” according to a joint statement from Amazon and Hachette.
- Amazon wins by helping to create more affordable e-books for customers.
There don’t have to be any losers. There is such a thing as a win-win solution, or in this case, a win-win-win-win.
As a reader, I thank Amazon for pushing for this. I realize that not everyone will agree that this is a good thing, and others will question the motivation and the future, but personally I believe this is a good step for the future of e-publishing.
The holidays are almost here. No doubt this timing helped this dispute reach its conclusion.
- Hugh Howey offers some great insights on this:
- Yahoo Finance:
- CNN Money:
Imagine a Black Friday type of event just for book lovers.
You don’t have to imagine it. It’s called Read Tuesday, and it’s free: www.readtuesday.com.
Please support the Read Tuesday Thunderclap. This will help spread awareness on the morning of Read Tuesday (December 9, 2014). It’s easy to help:
- Visit http://thndr.it/1CkO2Bg.
- Click Facebook, Twitter, or Tumblr and sign in.
- Customize the message. (Optional.)
- Agree to the terms. All that will happen is that the Thunderclap post about Read Tuesday will go out the morning of December 9.
- (The warning message simply means that Facebook, Twitter, or Tumblr need your permission to post the Thunderclap message on December 9. This is the only post that Thunderclap will make.)
Copyright © 2014 Chris McMullen, Author of A Detailed Guide to Self-Publishing with Amazon and Other Online Booksellers
- Volume 1 on formatting and publishing
- Volume 2 on marketability and marketing
- Boxed set (of 4 books) now available for Kindle pre-order
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