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http://www.thebookseller.com/news/online-almost-half-hachette-uks-trade-sales.html
Mike Shatzkin on the implication of this:
http://www.idealog.com/blog/an-innocent-story-with-dramatic-implications/
It's a scary implication because:
Ebook Royalties:
Trade: 25% of net (25% of 70% = 17.5%)
Amazon Publishing: 50% of net (50% of 70% = 35%) + their marketing power in selling ebook
Self-Publishing: 100% of net (100% of 70% = 70%)
Hachette UK's e-book sales stand at over 25% of trade sales in 2013 so far, with e-books accounting for over 30% of fiction sales, and for some authors and genres of fiction, over 50%, c.e.o. Tim Hely Hutchinson has revealed. Meanwhile the combined total of print books sold by online booksellers and e-books now accounts for almost half of all Hachette's UK trade sales, he said.
Mike Shatzkin on the implication of this:
http://www.idealog.com/blog/an-innocent-story-with-dramatic-implications/
This is earthshaking. I am not sure enough people in our business are seeing it that way. Or maybe they don’t talk about it much because it’s scary and there’s not much they can do about it.
1. Amazon can pay double the royalties of a publisher on ebooks without breaking a sweat and, frankly, can do the same on print books they sell themselves. Do the math. That means they can often sign an author and deliver as much revenue from just the sales they deliver themselves as a publisher does with the whole UK market.
It's a scary implication because:
Ebook Royalties:
Trade: 25% of net (25% of 70% = 17.5%)
Amazon Publishing: 50% of net (50% of 70% = 35%) + their marketing power in selling ebook
Self-Publishing: 100% of net (100% of 70% = 70%)