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Amazon to Increase Publisher Revenue

by Tom Moccia | November 11, 2010November 11, 2010 2:00 pm PST

I remember when Apple’s App Store launched to some criticism about the company taking 30 percent of the revenues while the publisher kept 70. As much as this structure was debated the whole concept seems to have worked out for both developers and Apple as downloads continue to soar.

This week Amazon is taking a page out of Apple’s book and says starting December 1st, publishers that provide content for the popular Kindle e-reader willkindle-kindle receive 70% of the sales revenue minus delivery costs. Granted, Amazon does not disclose what kind of cut publishers are currently receiving or how much the “delivery costs” would be, but apparently the 70 percent represents a significant increase.

Publishers must adhere to some guidelines in order to receive the proposed increase including making their content available to all Kindle e-readers as well as Kindle software running on other devices. Amazon offers its Kindle application for iPhone, iPad, BlackBerry and smart phones running the Android operating system.

Along with the revenue increase announcement, Amazon also released a Beta of new publishing tools making it easier for publishers to upload content and preview formatting before actually making their works available to buyers.

All this points to Amazon looking to boost its library of books, newspapers and magazines as competition in the e-reader sector has heated up and the holiday gift giving season is upon us. With the recent talk about newspapers and magazines coming to e-readers the majority of revenue is still garnered by the sales of digital books. According to Forrester Research publishers will sell $966 million in e-books, and forecasts this figure to climb to $3 billion by 2015.

I have voiced my preference of digital books over physical books in the past and it seems as though more and more readers are feeling as I do. As much as I like the feel of a book in my hand, it’s hard to argue the convenience and immediate gratification of e-books.

Have you converted to the e-book world or are you still reading them old school style?

Tom Moccia

Tom Moccia is a native of Stamford, Connecticut and moved his family west in 2000 and now calls Stockton, California home with his wife and two...