Feeds

Amazon awards self slimmer slice of newspaper pie

Doubles cut for publishers

3 Big data security analytics techniques

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. ®

Top three mobile application threats

More from The Register

next story
Virgin Media so, so SORRY for turning spam fire-hose on its punters
Hundreds of emails flood inboxes thanks to gaffe
A black box for your SUITCASE: Now your lost luggage can phone home – quite literally
Breakfast in London, lunch in NYC, and your clothes in Peru
AT&T threatens to pull out of FCC wireless auctions over purchase limits
Company wants ability to buy more spectrum space in auction
Turnbull leaves Australia's broadband blackspots in the dark
New Statement of Expectations to NBN Co offers get-out clauses for blackspot builds
Facebook claims 100 MEEELLION active users in India
Who needs China when you've got the next billion in your sights?
Facebook splats in-app chat, whacks brats into crack yakety-yak app
Jibber-jabbering addicts turfed out just as Zuck warned
Google looks to LTE and Wi-Fi to help it lube YouTube tubes
Bandwidth hogger needs tube embiggenment if it's to succeed
prev story

Whitepapers

SANS - Survey on application security programs
In this whitepaper learn about the state of application security programs and practices of 488 surveyed respondents, and discover how mature and effective these programs are.
Combat fraud and increase customer satisfaction
Based on their experience using HP ArcSight Enterprise Security Manager for IT security operations, Finansbank moved to HP ArcSight ESM for fraud management.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Top three mobile application threats
Learn about three of the top mobile application security threats facing businesses today and recommendations on how to mitigate the risk.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.