From Digital Book World:
Oyster, the highly anticipated, venture-backed ebook subscription platform for iPhones launched today. The app is available for iPhone devices and will soon be available on other platforms, including the iPad this fall and, later, Android.
The company is launching with 100,000 ebook titles available from publishers such as HarperCollins, Workman, Houghton Mifflin Harcourt and self-publishing distributor Smashwords. The service will cost $9.95 a month to read an unlimited number of books on up to six devices. The number of titles offered through Oyster will be “increasing over time,” CEO Eric Stromberg told Digital Book World.
. . . .
The company declined to share its business model, however — just how authors, publishers and other stakeholders are compensated for making their titles available. The company leadership only told Digital Book World that the model was a “win-win-win,” for rights-holders, readers and the company and its investors.
“It was a very hard problem that involved understanding the needs of authors, publishers and consumers,” said Stromberg, citing that he believes Oyster has it solved due to months of strategizing and in-house know-how from employees like Matt Shatz, who had been a vice president of digital at Random House.
. . . .
One enticing proposition for publishers around this new distribution model is the possibility of exposing readers to new authors and new books they may not discover anywhere else. Oyster, for instance, will use a combination of editorial, social and algorithmic recommendations to suggest new titles to readers.
Link to the rest at Digital Book World
PG generally likes new technology and business models, but declining to disclose how authors will be compensated makes him very uncomfortable. Generally new tech startups are anxious to explain how everybody wins under their business models.
Is Spotify secretive about how musicians are compensated? No. Here’s the link.