Feeds

Amazon awards self slimmer slice of newspaper pie

Doubles cut for publishers

Top 5 reasons to deploy VMware with Tegile

Amazon is reducing its cut on newspapers and magazines to 30 per cent, improving the margin considerably - though publishers will have to shoulder a share of the distribution costs first.

The new split will see 70 per cent of the subscription price going to the publisher, which is something in the region of double what News International was getting last year according to the Associated Press. Which should help Amazon cling on as the e-book business takes off.

And it is taking off - Forrester Research reckons that seven per cent of US adults are reading e-books, but those people are the ones who spend most on books anyway. Once users have an e-book reader they're buying 66 per cent of their reading material digitally.

This is a relief when the National Literacy Trust tells us that more UK children own their own mobile phones than their own books (85 per cent compared to 73 per cent), but if they've got the Kindle app installed on their phones then there's really no problem.

Still, magazines and newspapers are hoping that electronic distribution, paid by subscription, will revive their industry - and Amazon wants to maintain control of the distribution mechanism which means enticing content into the Kindle ecosystem.

The software incarnation of the Kindle, installed on a phone or tablet, synchronises over the device's internet connection, under Amazon's control and at the expense of the user. But the Kindle hardware has a more direct connection using Amazon's Whispernet (a cellular network the user never sees, or pays for) - that makes for simplicity of use, but incurs a delivery cost which will be deducted before the 70 per cent publishers' cut is calculated.

Amazon reckons a 9MB magazine will cost about $1.35 to deliver over Whispernet. That rate is surely comparable to the cost of sticking a copy in the post, though the publisher will be saving on printing costs too and will want to ensure its part of the future. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
Soz, web devs: Google snatches its Wallet off the table
Killing off web service in 3 months... but app-happy bonkers are fine
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
5 critical considerations for enterprise cloud backup
Key considerations when evaluating cloud backup solutions to ensure adequate protection security and availability of enterprise data.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
How to simplify SSL certificate management
Simple steps to take control of SSL certificates across the enterprise, and recommendations centralizing certificate management throughout their lifecycle.