Comments on: S&S Follows Random in Reduction of E-Book Royalties http://ereads.com/2009/03/s-follows-random-in-reduction-of-e-book.html Read the latest publishing news and provocative blogs by top commentators in the traditional and digital publishing fields. Fri, 10 Feb 2012 21:29:52 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: ebookroyalties http://ereads.com/2009/03/s-follows-random-in-reduction-of-e-book.html/comment-page-1#comment-587 ebookroyalties Sat, 20 Feb 2010 19:31:08 +0000 http://ereadsdev.com/?p=494#comment-587 I think this article was excellent. I do not see any math problem (ref: "morgan ebook"), but I think the math is pretty straightforward.<br /><br />Also, I agree with Jane and think that the reduction of Ebook royalties is nothing but an attempt by S&S to make more money at the autors' expense (if that is what Jane says).<br /><br />Nevertheless, it is great that E-Reads pays 50% of net receipts. What a difference, compared to Random House or Simon & Schuster!<br /><br />Bo, Editor<br /><a href="http://www.ebookbrothers.com" rel="nofollow">EbookBrothers.com</a> I think this article was excellent. I do not see any math problem (ref: "morgan ebook"), but I think the math is pretty straightforward.

Also, I agree with Jane and think that the reduction of Ebook royalties is nothing but an attempt by S&S to make more money at the autors' expense (if that is what Jane says).

Nevertheless, it is great that E-Reads pays 50% of net receipts. What a difference, compared to Random House or Simon & Schuster!

Bo, Editor
EbookBrothers.com

]]> By: E-Reads http://ereads.com/2009/03/s-follows-random-in-reduction-of-e-book.html/comment-page-1#comment-78 E-Reads Thu, 07 May 2009 19:10:00 +0000 http://ereadsdev.com/?p=494#comment-78 Here's the math.<br /><br />1. Assume the retail price of the e-book is $10.00.<br />2. In the old royalty model, the publisher paid a royalty of 15% of the list price, or $1.50.<br />3. In the new model, the publisher pays the author 25% of the net. What is the net? It's the retail price minus the retailer's discount. The discount is about 50%. That means that the publisher is actually receiving $5.00.<br />4. 25% of that $5.00 net is the royalty that the publisher pays the author. That comes to $1.25, compared to $1.50 paid before the publisher changed its policy. The author loses 25 cents for each e-book sale.<br /><br />Hope that's clear.<br />RC Here’s the math.

1. Assume the retail price of the e-book is $10.00.
2. In the old royalty model, the publisher paid a royalty of 15% of the list price, or $1.50.
3. In the new model, the publisher pays the author 25% of the net. What is the net? It’s the retail price minus the retailer’s discount. The discount is about 50%. That means that the publisher is actually receiving $5.00.
4. 25% of that $5.00 net is the royalty that the publisher pays the author. That comes to $1.25, compared to $1.50 paid before the publisher changed its policy. The author loses 25 cents for each e-book sale.

Hope that’s clear.
RC

]]> By: morgan ebook http://ereads.com/2009/03/s-follows-random-in-reduction-of-e-book.html/comment-page-1#comment-76 morgan ebook Thu, 07 May 2009 13:34:00 +0000 http://ereadsdev.com/?p=494#comment-76 I guess I can not agree with this article. When I try to count it 25% of net receipt is better than that. I guess I can not agree with this article. When I try to count it 25% of net receipt is better than that.

]]> By: Lynn Emery http://ereads.com/2009/03/s-follows-random-in-reduction-of-e-book.html/comment-page-1#comment-53 Lynn Emery Wed, 01 Apr 2009 18:26:00 +0000 http://ereadsdev.com/?p=494#comment-53 HarperCollins has the same rate and it's a "take it or leave" clause. HarperCollins has the same rate and it’s a “take it or leave” clause.

]]> By: Jane http://ereads.com/2009/03/s-follows-random-in-reduction-of-e-book.html/comment-page-1#comment-46 Jane Thu, 26 Mar 2009 13:24:00 +0000 http://ereadsdev.com/?p=494#comment-46 The problem is that S&S ebook pricing isn't commensurate with the lowest print version available. Almost all S&S digital copies of comparable mass markets are being retailed at a 50% uptick. I'm very frustrated with this pricing and I think it reflects an attempt by S&S to take a higher cut of the book pie but placate authors by telling them that the net price won't be reduced because they are going to jack up the ebook prices. The problem is that S&S ebook pricing isn't commensurate with the lowest print version available. Almost all S&S digital copies of comparable mass markets are being retailed at a 50% uptick. I'm very frustrated with this pricing and I think it reflects an attempt by S&S to take a higher cut of the book pie but placate authors by telling them that the net price won't be reduced because they are going to jack up the ebook prices.

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