Tuesday News: HarperCollins to be spun off; Niche authors protest price limit; Netflix reveals ISP Speeds
This separation is a little different than the direction that Hyperion and Amazon are going which is to acquire books tied in to various video media segments. Business on NBCNews.com
Speaking of HarperCollins, its last quarter 18% increase in sales was primarily due to the Thomas Nelson catalog per Publishers’ Weekly.
On the other hand, niche authors are stuck with the $9.99 ceiling. To the deputy chief executive of the Society of Authors, the inability to price higher is hurting them. Books priced outside the sweet zone between $2.99 and $9.99 are penalized by Amazon through a lower royalty rate.
Any book priced below $2.99 and above $9.99 receive only a 35% royalty rate versus a 70% royalty rate.
Kate Pool, deputy chief executive of the Society of Authors, commented: “Our concern is the increasing dominance that Amazon is having. It is starting to change the perception of books entirely and the danger is people will start to see them in terms of cheap items rather than the price reflecting the time and research that has gone in to it.”The Bookseller