Amazon and Hachette settled their months-long dispute over e-book prices.
The agreement includes incentives for Hachette when the publisher chooses to deliver lower e-book prices to customers.
Simon & Schuster reached an agreement with Amazon last month, which also included an incentive for delivering lower e-book prices to customers.
How low? That’s a good question.
Kindle Direct Publishing (KDP) has provided such an incentive for years: e-books prices above $9.99 pay a royalty of 35%, whereas book prices between $2.99 and $9.99 pay a royalty of 70% (minus delivery costs).
The terms are no doubt different for the big publishers. The percentages won’t be the same, for one. But the KDP model offers some idea for what to expect.
Don’t expect bestselling traditionally published e-books to dive down to $2.99 or 99 cents. I’m thinking closer to $9.99.
- The readers win with more affordable e-book prices…
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