Amazon Incentivizes Digital Discounts
As things come to a head between publishers and providers, and as Barnes & Noble(NYSE:BKS) and Amazon(NASDAQ:AMZN) compete over the digital self-publishing market, Amazon is attempting to place themselves firmly in the forefront of publisher attention by offering the potential for doubled royalties to users of their DTP self-publishing platform. The gist of the announcement is simple; If you publish a book through their service and the digital copy is at least 20% cheaper than the print copy, listed between $2.99 and $9.99, and have Text-to-Speech enabled, you will get 70% royalties on all your eBook sales instead of the standard 35%.
Let’s face it, this gives Amazon a huge advantage when it comes to providing content for the Kindle and all related software readers. As much as the traditional publishing industry balks at the concept, independents are coming out of the woodwork these days and some of them are making big names for themselves in the eBook marketplace(J.A. Konrath makes a good example). By keeping them happy and coming back for more, money in this case, Amazon has a chance to gain fairly exclusive rights to loads of great talent. It’ll be interesting to see what the response is both from the industry and the competition!