Amazon Increases Kindle Book Royalty Payouts To 70 Percent

Amazon has dropped a bombshell by announcing that it will be increasing the amount of money given to publishers and authors although, as Engadget points out, it does come with some big threads attached.

As from the 30th of June, the Kindle manufacturer says that it will keep only 30 percent of the list price of an electronic book in the hope that the discount encourages authors and publishers to drop their prices.

The scheme, which will be in addition to the current Digital Text Platform, will only be valid for books priced between $2.99 and $9.99 and for those electronic books which will sell for 20 percent less than lowest listed price of the paper version.

Amazon has also confirmed that there will be associated delivery costs that are based on the file size and charged $0.15 per MB or around 6 cents on average per book. The retailer reckons that the new scheme could more than double the author's revenue on a $8.99 book.

Russ Grandinetti, Vice President of Kindle Content, said in a statement that "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".

However, only books currently sold in the UK, still in copyright and out of the public domain will be covered. Publishers will also have to make sure thaty they support Kindle-only features such as text to speech functionality.

Our Comments

Interestingly, publishers will have to make the books available worldwide or face being kicked out. This means that unlike say DVDs, there cannot be a staggered release which is excellent news for readers worldwide. Furthermore, such a proposal is bound to cause prices to fall as well and promote the Kindle platform.

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