Wednesday, January 20, 2010

An improved deal for authors from Amazon:

Starting on June 30, Amazon says that for each Kindle book sold, authors and publishers who select the new 70 percent royalty option will receive 70 percent of the list price, minus delivery costs. This new option will be in addition to and will not replace the existing DTP standard royalty option, which is set at a 65-35 split, with 65 percent going to Amazon.

Will authors make more money from now on? Maybe, initially. But over time, the most likely outcome will be a steep drop in price for electronic books. Trade "paperbacks" will probably go down to the $3-5 range. Even at this level authors will make more money than with traditional publishers. We should also expect new formats that allow embedded media: video, audio, animations, and etc. One obvious choice would be a portable $1 application that feeds content, e.g. one episode at a time. Apple is already doing it with iTunes, and publishers, like New York Times or cable networks, will follow the model.

In 5-element analysis terms, this is a change in payload packaging, which usually precedes an expansion and drastic changes in other system elements.

tags: system, five element analysis, content, apple, information, computers, payload, evolution

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