From The Digital Reader:
Over the past two months Amazon has been supporting their very public and very rough book contract negotiations with a subtle media campaign which has kept indies on the sideline. By saying little and letting the publishers leak details, Amazon has avoided giving indies a reason to join sides with the major publishers that Amazon is fighting.
That was a smart move, but yesterday everything changed. Amazon released a statement which inadvertently confirmed that indie authors and publishers have a horse in this race.
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In short, Amazon has confirmed the rumors that the Bonnier negotiations include a fight over ebook payments.
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Indie authors might not care whether Amazon is extracting increased and specific co-op service fees from Hachette (they might actually want to pay for the services – if they boost sales), but now that Amazon is pushing major publishers to accept a smaller cut of ebook sales it is time to be concerned.
Tell me, if Amazon manages to force the major publishers to accept a smaller cut of ebook sales, how long do you think Amazon will continue to offer the 70% option in KDP?
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I think Amazon is using the high royalty rate to keep the publishing industry fragmented. By offering better terms, Amazon keeps power from concentrating into fewer hands. But if Amazon manages to force publishers to accept a lower rate, it won’t need to offer such a high rate via KDP any more.
Link to the rest at The Digital Reader and thanks to Meryl for the tip.