From the Smashwords blog:
Last Friday in a bit of news that was missed by most indie authors, Amazon quietly announced that because they’re pricing their Kindle Unlimited ebook subscription service at $3.00 per month in India, authors will now earn less.
I’m sorry to say I predicted such a devaluation back in March in an interview with the International Publishers Association titled, Not all Subscription Services are Created Equal. In that interview I warned there was nothing stopping Amazon from waking up one day and deciding that their $9.99 subscription service should be priced at $3.00 instead. So now it’s happening in India. Amazon hints it will happen in other countries too.
Was I prophetic? Not really. None of this should come as a surprise, yet thousands of authors will be surprised once they realize the slippery slope that is KDP Select. It’s an inevitable outcome when authors surrender full pricing and compensation control (via their KDP Select enrollment) to a company whose entire business model is predicated upon commoditizing and devaluing products by stripping suppliers of pricing control. Amazon does this in the name of offering customers the lowest possible prices.
There’s another potentially more insidious form of devaluation taking place, and sadly the indie author community (which supplies the bulk of KU titles) is Amazon’s unwitting accomplice.
Kindle Unlimited is training readers to think that single-copy ebook purchases are too expensive.
. . . .
Kindle Unlimited is crucifying single copy sales upon the altar of greed and gluttony.
Link to the rest at Smashwords and thanks to Toni for the tip.
PG doesn’t understand how gluttony plays into ebook subscriptions, but he’s not too enamored with Mark’s view that indie authors are “unwitting accomplices” or otherwise unable to look out for their own welfare without Smashwords’ help.
If Smashwords wants to effectively compete with Amazon, providing an excellent online environment where indie authors earn a lot of money because readers can easily discover books they like on something better than a Tinkertoy website would be a more effective strategy than trashing Amazon.
In PG’s unfailingly humble opinion, any hint of sore losership in a company’s marketing communications is a terrible idea. In that respect, a comparison between the content and tone of this Smashwords post and the Draft2Digital blog is illuminating.