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How Amazon's Ebook Subscriptions Are Changing the Writing Industry

An anonymous reader writes: Amazon is now offering an ebook subscription service — $9.99/month gets you access to 700,000 titles, both self-published and traditionally published. The funds are gathered together, Amazon takes its cut, and the rest is divided up based on how many times a given book was read.

Some authors like it, and some don't, but John Scalzi pointed out that this business model is notable for being different from how the writing industry has worked in the past: "[T]he thing to actively dislike about the Kindle Unlimited 'payment from a pot' plan is the fact that it and any other plan like it absolutely and unambiguously make writing and publishing a zero-sum game. In traditional publishing, your success as an author does not limit my success — the potential pool of money is so large as to be effectively unlimited, and one's payment is independent of any other purchase a consumer might make, or what any other reader might read.

In the traditional publishing model, it's in my interest to encourage readers to read other authors, because people who read more buy more books — the proverbial tide lifts all boats. In the Kindle Unlimited model, the more authors you and everyone else reads, the less I can potentially earn. And ultimately, there's a cap on how much I can earn — a cap imposed by Amazon, or whoever else is in charge of the 'pot.'"

9 of 250 comments (clear)

  1. Rose the tide in other industry. Buy my book, get by raymorris · · Score: 4, Interesting

    In another industry I was closely involved in, this approach significantly increased total revenue. Instead of saying "buy my book for $20", the author can say "get my book and 70,000 others for just $20". Which do you think generates more sales?

    In the very successful implementations, the amount paid out was based not just on which content was most viewed, but which generated sales via something like an affiliate code. There may be smaller content which many people will click if it's free, but nobody bought a subscription in order to see that content. Others, such as TAOCP, may have fewer viewers, but those viewers bought the subscription specifically to read TAOCP. TAOCP would be rewarded for bringing buyers.

  2. Share per item to author, to seller... by gwolf · · Score: 5, Interesting

    Authors have long suffered the publishers pay them a misery compared to what they earn. I have published very little, and via my university (which means, very little distribution but relatively very good terms). I get 10% of the sales. In the "real world", maybe a third of that is normal.

    Now, Amazon is continuing to pay the authors the same 3%. But not only no exchange of tangible goods happens, now we the readers also pay Amazon for the book-of-all-books (that is, the Kindle). Yes, some people will use the Kindle store to read on the computer, tablet or whatnot, but it's definitively a lesser experience.

    So anyway, Amazon is still paying something to the publishers (except, of course, for Amazon Direct published works). But given the goods themselves "cost" no money, they are getting *way* more than by selling books — Of course, the authors would prefer their income to increase proportionally as well.

    Not shrink proportionally.

  3. Re:Encouraging quality by BarbaraHudson · · Score: 4, Insightful
    This move discourages quality. People will download indiscriminately since the cost is fixed. Which means that crappy writers make as much of the "pot" as good writers, so why strive for quality when you can write 6x as much crap and get paid MORE than the person who writes 1 good book. Good writers shouldn't subsidize crappy ones.

    Remember the saying "bad money drives out good"? People will horde their genuine currency and try to pass off counterfeits as quickly as possible to the next sucker. Same as people now are selling Rubles for Euros and Dollars.

    --
    "Transparent" is a shit show that trades on every stereotype going. A man in drag is NOT a transsexual.
  4. Re: Bah, humbug! by gweilo8888 · · Score: 4, Funny

    Go easy on him. He never got the chance to learn those words by reading them in an ebook, because he was too hung up on the fonts used to get past the first page...

  5. Re:Rubbish by AK+Marc · · Score: 4, Informative

    Your comments are the opposite of what I read on the subject. Kindle doesn't care what you "download". Kindle tracks every page turn. If you don't read the book, it won't count as "read". Do download crap, get 2 pages in, and Kindle knows you read two pages and no more.

    If you don't know the basics of how Kindle works, why are you posting so authoritatively on the subject?

  6. Re:Freedom by CreatureComfort · · Score: 4, Interesting

    I find their selection is marginally different from Google Books or B&N. However, I also find that inevitably, Amazon has the lower price, for me, than those other two, so that is where I generally buy, especially if it is from an author, or on a subject, I'm not familiar with. Even though I know that Amazon is pandering to me to try to lock me in by habit at the expense of the authors.

    For the authors that I know I like, I try to go out of my way to purchase as close to directly through them, or from their recommended source as I can.

    I know that buying from Amazon is not in my long term best interest, but for a product I don't know that I will value, even as high as Amazon does, or for a product that I don't know gets any more money to the actual author, rather than just higher profits for the middle men, I'll put my near term interst over speculating that something else is a better long term strategy.

    --
    "Unheard of means only it's undreamed of yet,
    Impossible means not yet done." ~~ Julia Ecklar
  7. "Tradition?" by Anonymous Coward · · Score: 5, Interesting

    Writing has changed a lot over the years.

    When Homer (or at least whoever copied him down) and Plato and Vergil and Cicero wrote, an author published (divulgavit = made common or public; publicavit = threw open to the public, also used of public confiscation of private property and of prostitution; in lucem edidit = gave into the light of life) by making a work available for anyone to hear, listen to, or copy. It wasn't paid through sales, but rather supported for by patronage (the rich supported the arts) or own's own income from other sources. It wasn't about profit, and making copies (and making copies available) was a virtuous endeavor also supported by the rich. Manuscript subscriptions (like "Emendavi ego Dracontius") tell scholars who in late antiquity edited copies and recopied them for the benefit of others. This virtue continued to be practiced by monks through the middle ages, who copied older works and wrote new ones and disseminated both across Europe through networks of borrowing and lending that were the key to sustaining and maintaining written culture: we would have no literature from antiquity or the middle ages without the Church's non-profit model of supporting literature through copying and patronage. While books became precious commodities as writing materials grew scarce (while papyrus, bast, and other writing materials were used even for wrapping fish in antiquity, it took a flock of sheep to make a physical book in the middle ages) the "intellectual property" was not regarded as such, but rather as the common inheritance of humanity (the patrimonium humanitatis). Carmina (songs and poetry) and prose alike were no one person's intellectual property: the author could be praised by name, or he could hide under a monk's anonymity, but it wasn't even conceivable that he could restrict the further publication of his works. The Church could try to burn heretical material, just as Roman emperors had tried, but copies often survived somewhere and were recopied; but restricting intellectual property wasn't even a consideration.

    Then, in the late middle ages, came Cathedral schools and the first universities, and students began paying to copy books themselves for classes. When the printing press and paper came to Europe, the idea of the privilegium, or exclusive right to furnish copies, was already in place, and books could be issued under copyright. Some authors began to profit from their books, but more often publishing houses did. Songs were still common material, and people sang what they learned without fear of legal retribution. Many authors disapproved of the copyright of privilegium: Erasmus, in a 1586 letter to Jacopo Sadoleto, complains of the copyright (backed by threat of excommunication) given to the Francesco Giulio Calvo: "But since Calvo's publishing house cannot supply copies to all parts of the world, it would be a serious blow to scholarship, in my opinion, if a book of such importance could be obtained only from a single Roman publisher." Books were sometimes copied without privilegium or even against the privilegium of another publishing house, and some authors clung to the tradition of making their work truly public.

    Then came the twentieth century and the "Culture Industry" (a term coined by Western Marxists like the Frankfurt School, who despised mass or "low" culture). What had been "culture" and "literature" for ornamenting the soul and improving the mind became "content" to generate revenue streams, mass-produced by division of labor instead of genius and careful cultivation. Although electronic distribution through computers designed to reproduce and spread information meant that books and songs and new forms of art like movies could be distributed for free -- no flocks of sheep required -- nevertheless, pirating an .mp3 of Britney Spears or a copy of that new North Korea movie or some godawful e-book will get you a stiffer sentence than if you shoplifted a copy from the store. The irony is that much of what is now peddled by

  8. I love Shashdotters, but.... by ThomasBHardy · · Score: 4, Insightful

    I love Slashdot and Slashdotters. But in this case I'm kind of taken back by the responses.

    Being married to an Author and knowing many, many authors, I can point out a few things:

    Most authors, beyond the "super big names" struggle to make even a moderate living off of their books. When these folks try out a new system like the Amazon plan, and they find the are making less, we're not talking about folks who used to make 3 million, now only making 2.5 million. We're talking about someone who might be making for example 30k per yea,r making so much less that they are forced to cease writing as a vocation.. It's directly impactful, and the impact is not tied to quality of the book. Rather, the impact is books with catchy titles and sales pitches getting more downloads and making more money, regardless of quality. "hey, it's free, I'll click that since there's no downside to me for doing so." This leads to other books making less of the allotted bucket of funds. When spending money on books, folks tend to check reviews, read the sample download or use various criteria to filter down their selection to what they enjoy reading. So better books get rewarded. With the new plan, shotgun approaches become the norm.

    Lets try it another way. Say tomorrow, there was one major store through which the majority of all software (personal, business, etc.) and all IT services (Ops, support, admin, etc, each treated as a service ticket item) were offered and the owners of that store decided "Forget what people pay today for software and services, we'll sell them anything and everything for $10 a month and just divvy up profits as we see fit, And we'll do it without reporting to anyone how the process works or what actual counts occurred, we'll just send them a check."

    How would you feel about that when it was your app that you worked for a year and you usually make about $50k per year. But now when another app AngryBirds sells 30 million copies, your get a check for $5 for the month for your app despite people still downloading downloading it because statistically it's insignificant?

    Or how about your IT job that you now get paid 1$ per service ticket because a billion other service tickets get processed as well? Did you enjoy working all day for $20?

    While it's easy to assume that anything cheaper is better, remember to take into account that the cheaper may be coming at the actual workers pocket. I'd expected to see Slashdotters more upset at the middleman holding the actual workers over a barrel.

    --
    Warning: Teh poster of this messaeg is lysdexic
  9. Re:Freedom by goose-incarnated · · Score: 5, Informative

    And free to get crushed by Amazon. There's no competing against a behemoth.

    Smashwords seem to be doing just fine (see my link). An artist's biggest problem is obscurity not piracy. Amazon is not helping in this regard, and in fact their insistence on distributing only paid-for books and not free ones means that they (Amazon) are actually a poor platform for new authors.

    I want people to read my book and remember my name. On Amazon I get maybe 30 downloads when the book goes for free for five days out of every 90. On Smashwords I get many more downloads (200+) in the same time period. Smashwords is helping me be an author, Amazon wants to help me be a business. I want to be an author.

    If enough people decide that I'm a good author then I might decide to be a business, but for now I'm content with just being an author, and Smashwords furthers my goal more than Amazon does.

    --
    I'm a minority race. Save your vitriol for white people.