Refreshed internals, lower price point possible.
Amazon Tweaks Kindle Store Royalty Program Ahead of Apple Tablet Launch
For each Kindle book sold, authors and publishers who choose the new 70 percent royalty option will receive 70 percent of list price, net of delivery costs. This new option will be in addition to and will not replace the existing DTP standard royalty option. This new 70 percent royalty option will become available on June 30, 2010.
Delivery costs will be based on file size and pricing will be $0.15/MB. At today's median DTP file size of 368KB, delivery costs would be less than $0.06 per unit sold. This new program can thus enable authors and publishers to make more money on every sale. For example, on an $8.99 book an author would make $3.15 with the standard option, and $6.25 with the new 70 percent option.
The announcement comes just one week before Apple's media event where it is expected to introduce its long-awaited tablet device. e-Book functionality is expected to be included on the new device, with Apple reportedly in talks with book publishers to offer their content on the tablet. Apple currently offers developers whose applications appear in the company's App Store for the iPhone and iPod touch 70% of revenues, sparking speculation that Amazon's e-book pricing change is an effort to match what it expects Apple could offer publishers for distribution through the iTunes Store.