After driving down eBook prices across the business, Amazon has a new publisher/author -friendly royalty option. The new option lets publishers or authors who use the Kindle Digital Text Platform (DTP) choose a 70% royalty option of the list price, net of delivery costs. But there is a long checklist of requirements to qualify for the royalty rate, including offering competitive prices against the book’s print price.
To qualify for the 70% royalty option, the list price must be $2.99-$9.99. In addition, the list must be at least 20% below the lowest list price for the print book. And the title has to be released in all geographies for which the author or publisher has rights. The title must be included in a broad set of features in the Kindle Store, such as text-to-speech. And note, that this list of features will grow over time as Amazon continues to add more functionality to Kindle. And finally books must be offered at or below price parity with competition.
Delivery costs are based on file size, and pricing is set at $0.15/MB. According to Amazon, the average DTP file size of 368KB, would be less than $0.06 per unit sold for delivery. Amazon gives an example of what they royalty would look like in the press release, “…on an $8.99 book an author would make $3.15 with the standard option and $6.25 with the new 70 percent option.”
The 70% royalty option is for in-copyright works and is unavailable for works published before 1923. And the 70% royalty option is currently only available for books sold to United States customers. Still, publishers must release it in all territories they have rights in.