We wanted–no, scratch that–we felt obligated–to share this Authors Guild article with you. It’s called E-Book Royalty Math: The House Always Wins. Why are we not surprised? Here’s a preview:
“Everything else being equal, publishers will naturally have a strong bias toward e-book sales. It certainly does wonders for cash flow: not only does the publisher net more, but the reduced royalty means that every time an e-book purchase displaces a hardcover purchase, the odds that the author’s advance will earn out — and the publisher will have to cut a check for royalties — diminishes. In more ways than one, the author’s e-loss is the publisher’s e-gain.”
Let us know what you think in the comments section below!
– WLT Staff
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pubit.barnesandnoble.com
Barnes & Noble e-book publishing service
For e-books selling between $2.99 and $9.99, royalty is 65% of list. For e-books selling above or below(!) these prices, royalty is 40% of list.
This should put some pressure on the publishers!