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kestrellKes: The bottom line seems to be that the publisher believes that if people can purchase a $9.99 ebook, they are less likely to purchase a $25 hardcover. As far as I am concerned, I am highly unlikely to purchase a $25 hardcover mainstream book at all, but will feel much more receptive to a $9.99 ebook. I am even less likely to purchase books from a publisher who seems to be punishing its authors because ebooks are finally gaining serious sales.
Posted yesterday to
Publishing Perspectives
http://publishingperspectives.com/?p=7336
block quote start
Publishers Marketplace broke the news
earlier today of a new contract being pushed out by Macmillan (parent company of St. Martin's, Farrar Straus and Giroux, Henry Holt, Picador, and
Tor among others) to agents in the United States that asserts the company will only offer a 20% royalty rate
for e-books, down from the typical 25% and would be applicable to “all exploitation of the content of the book in digital form.” Agent Richard Curtis,
who posted the letter from Macmillan’s John Sargent to
his blog
http://ereads.com/
, suggested to the
New York Times
http://mediadecoder.blogs.nytimes.com/2009/10/28/macmillan-lowers-e-book-payments-for-authors/#more-17493
that the move was entirely in the wrong direction: “The point is whether we should be playing on such a low ballfield at all and whether the industry should
not really be thinking about a 50 percent royalty of net receipts.”
block quote end
and this quote from the NY Times article:
block quote start
E-books still represent a sliver of the overall book industry — estimates range from 3 to 5 percent of total sales — but the sales are the fastest growing.
While publishers rush to embrace the new format, they also fear that massive discounting by retailers including Amazon, Barnes & Noble and Sony
could ultimately devalue what consumers are willing to pay for books.
Currently, most popular retailers of digital books sell new releases and best sellers for $9.99 apiece, far below the typical $25 to $35 list price on hardcovers.
For now, the retailers still pay publishers a standard wholesale price that is equal to half the list price of a hardcover book, but publishers fear that
as e-books grow to a bigger share of the total market, the retailers will pressure publishers to cut their wholesale prices.
Paul Aiken, executive director of the Authors Guild, said that Macmillan was anticipating a time when Amazon, Barnes & Noble and other e-book retailers
would try to push down wholesale book prices. “This is Macmillan’s attempt to pre-emptively squeeze authors.”
Mr. Sargent declined to comment.
Richard Curtis, a literary agent who posted Mr. Sargent’s letter on his blog,
ereads.com
, said the difference between Macmillan’s standard e-book royalty and other publishers was not the point. “The point is whether we should be playing on
such a low ballfield at all,” Mr. Curtis said, “and whether the industry should not really be thinking about a 50 percent royalty of net receipts.” He
argued that because the cost to publishers of producing e-books was so low, authors should get a higher proportion of sale proceeds.
Indeed, Laurence J. Kirshbaum, a literary agent and former publishing executive, said: “I don’t really understand the logic since e-books really do not
require any additional work on the part of the publisher.” He added that e-book royalties should be negotiated on a case-by-case basis.
block quote end
Posted yesterday to
Publishing Perspectives
http://publishingperspectives.com/?p=7336
block quote start
Publishers Marketplace broke the news
earlier today of a new contract being pushed out by Macmillan (parent company of St. Martin's, Farrar Straus and Giroux, Henry Holt, Picador, and
Tor among others) to agents in the United States that asserts the company will only offer a 20% royalty rate
for e-books, down from the typical 25% and would be applicable to “all exploitation of the content of the book in digital form.” Agent Richard Curtis,
who posted the letter from Macmillan’s John Sargent to
his blog
http://ereads.com/
, suggested to the
New York Times
http://mediadecoder.blogs.nytimes.com/2009/10/28/macmillan-lowers-e-book-payments-for-authors/#more-17493
that the move was entirely in the wrong direction: “The point is whether we should be playing on such a low ballfield at all and whether the industry should
not really be thinking about a 50 percent royalty of net receipts.”
block quote end
and this quote from the NY Times article:
block quote start
E-books still represent a sliver of the overall book industry — estimates range from 3 to 5 percent of total sales — but the sales are the fastest growing.
While publishers rush to embrace the new format, they also fear that massive discounting by retailers including Amazon, Barnes & Noble and Sony
could ultimately devalue what consumers are willing to pay for books.
Currently, most popular retailers of digital books sell new releases and best sellers for $9.99 apiece, far below the typical $25 to $35 list price on hardcovers.
For now, the retailers still pay publishers a standard wholesale price that is equal to half the list price of a hardcover book, but publishers fear that
as e-books grow to a bigger share of the total market, the retailers will pressure publishers to cut their wholesale prices.
Paul Aiken, executive director of the Authors Guild, said that Macmillan was anticipating a time when Amazon, Barnes & Noble and other e-book retailers
would try to push down wholesale book prices. “This is Macmillan’s attempt to pre-emptively squeeze authors.”
Mr. Sargent declined to comment.
Richard Curtis, a literary agent who posted Mr. Sargent’s letter on his blog,
ereads.com
, said the difference between Macmillan’s standard e-book royalty and other publishers was not the point. “The point is whether we should be playing on
such a low ballfield at all,” Mr. Curtis said, “and whether the industry should not really be thinking about a 50 percent royalty of net receipts.” He
argued that because the cost to publishers of producing e-books was so low, authors should get a higher proportion of sale proceeds.
Indeed, Laurence J. Kirshbaum, a literary agent and former publishing executive, said: “I don’t really understand the logic since e-books really do not
require any additional work on the part of the publisher.” He added that e-book royalties should be negotiated on a case-by-case basis.
block quote end
