Relay Advisors

Amazon's New Deal to Alter Publishing Industry

 

  • Amazon will pay authors and publishers a royalty of 70% of the list price of Kindle books, shaking up author’s traditional cut of 10%.
     
  • The new model will encourage authors to go directly to Amazon, effectively bringing the company into publishing.

  • Rules for the deal dictate the price range, geographical distribution and the competitiveness of the price.

  • The deal will have authors pressure their publishers to drop retail prices significantly lower than physical book prices.

Takeaway: Amazon uses strategic pricing to optimize its assets and to tighten its grip over the e-book market, and disrupt the publishing industry again.

Henry Blodgett at AdAge.com


Relay Advisors is a corporate finance firm specialized in strategic asset optimization and divestiture.

Relay gives its network of Advisors access to its platform, knowledge base, deal flow and the opportunity to earn consulting and referral fees. Apply to our Advisory Board, or sign up for our newsletter.

 

Comments

No comments have been posted yet.
Post a comment
  1. You must be logged in to post a comment.
  2. Must be less than 400 characters. Allowed HTML tags: <a>, <b>, <i>, <u>.