Kindle periodicals

Although Amazon recently improved the terms it offers publishers who distribute books on the Kindle, it continues to offer magazine content providers a 30% revenue share.

Given that the device is monochromatic, prices are determined by Amazon and publishers don’t get to establish a relationship with their readers, Ad Age asked, “Why would any magazine or newspaper publisher strike a deal with Amazon?” Their reporting turned up five answers:

  • The Kindle footprint is still relatively small, lowering the risk of subscriber cannibalization
  • A 30% revenue share without physical cost can improve circulation profitability
  • Publications in the Kindle store are seen and bought by the consumers interested in a digital option
  • It’s a toe in the water, even if it’s not the solution publishers want
  • Contracts are short enough to support a migration, if needed

The article’s headline aptly proclaims, “Pubs flirt with Kindle but don’t carry a torch.” I have to agree.

About Brian O'Leary

Founder and principal of Magellan Media Consulting, Brian O’Leary helps enterprises with media and publishing components capitalize on the power of content. A veteran of more than 30 years in the publishing industry and a prolific content producer himself, Brian leverages the breadth and depth of his experience to deliver innovative content solutions.

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