Who says you can't have your cake(or pie in this instance) and eat it too?
Online retail giant Amazon.com unveiled a plan this week that will offer independent authors and publishers a bigger cut of the action of the downloadable e-books sold for the very popular Kindle reader.
Due to begin at the end of June 2010, the new plan states that both publishers and authors will receive a whopping 70% of the list price of a book that is listed to sell between $2.99 and $9.99. Both authors and publishers have been complaining for quite some time about receiving so little of their share of the pie. Perhaps this is the olive branch being offered by Amazon to keep them quiet. Or maybe they're just starting to feel the heat from the competition.
The Kindle electronic reader which hit the market in 2007, is one of the best selling devices on Amazon although the popular e-book reader faces some pretty stiff competition from other readers that are quickly being manufactured and distributed by top names such as Sony and Barnes and Noble.
Normally authors receive between 7 and 15 percent of the list price for their books and with the new rate in place an author can expect to receive double the amount they did previously for a book that sells for $8.99.-you do the math here. At 70% they will earn $6.25 per copy rather than the previous $3.15. Authors rejoice! This should make for some interesting news to come in the next few weeks. Could it cause top authors to dump plans to publish their books in paper and print form? Only time will tell so stay tuned.
Amazon explained that the new program will not include any books and essays published prior to 1923 and that it will only be valid for books sold in the United States, at least in the beginning. It is no wonder that Amazon is trying to keep e-book prices low as more and more manufacturers are scrambling to release digital readers that have more advanced features such as touch screen navigation and color screens.