From Dear Author:
The rise of self publishing hasn’t just affected traditional print publishers. In fact, with the rate of ebook adoption slowing many observers suggest the numbers indicate we’re reaching a plateau. One of the less publicized victims of the sea changes occurring in publishing is the digital first publisher.
While reports of financial instability has plagued Ellora’s Cave, one of the oldest digital publishers around, for years recent rumors place Samhain squarely in the spotlight as well. Long time readers of Dear Author are familiar with the rise and fall of digital publishers back in the mid to late 2000s. It seemed that everyone with a passing knowledge of a WordPress template felt comfortable setting up shop.
Through it all Ellora’s Cave and Samhain have endured.
Recent reports from authors, however, suggest that both companies are struggling. Ellora’s Cave is undergoing several months of non payment of royalties stemming back to October 2013.
In response to the late payments, the owner of Ellora’s Cave sent out a group email in February explaining that royalties were late because a new program had been installed but the software program needed fixing resulting in the EC staff having to calculate royalties by hand.
. . . .
Samhain doesn’t have money problems. From all accounts, the company is still flush but experiencing some downturn in sales. No, the complaints about Samhain have to do with author contacts and contract terms. These more restrictive terms seem inspired to keep more rights within the company.
There are the general complaints that Samhain is slow to respond to any inquiries. But more disconcerting for authors is the change in several policies.
It used to be that obtaining a reversion of rights was fairly simple. Any author could request a reversion of rights after seven years. Combined with robust royalties of 30% off the retail and 40% off sales direct from the publisher, Samhain was viewed as one of the best and most author friendly contracts around.
Tides are turning. Currently Samhain is being non responsive to reversion letters. Samhain, in response to an inquiry, simply says that it is being thoughtful in the way that the requests are being processed.
A new contract clause is being inserted. The boiler plate language is “Metadata with respect to the Work shall be considered work made for hire to the Publisher and Publisher shall own all rights to such metadata.”
Link to the rest at Dear Author and thanks to Amy for the tip.