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Amazon to share 70% of revenue to Kindle magazine and newspaper publishers

Wednesday, November 10, 2010

Press release from the issuing company

Seattle - Amazon.com, Inc. today announced that magazine and newspaper publishers will soon be eligible to earn a larger share of revenue from each title they sell in the Kindle Store (www.amazon.com/kindlestore). For each magazine or newspaper sold, publishers will be able to earn 70 percent of the retail price, net of delivery costs. These new 70-percent royalty terms will become available on December 1, 2010.

"We are constantly working at improving the Kindle magazine and newspaper experience for both customers and publishers," said Peter Larsen, Director of Kindle Periodicals. "Building on the recent introduction of Wi-Fi-enabled Kindles and the upcoming availability of newspapers and magazines on Kindle Apps, we're pleased to add an increased revenue share and a great new tool for making Kindle better and easier than ever for publishers."

For orders delivered to Kindles using Amazon's Whispernet service, delivery costs are shared between Amazon and the publishers (see www.amazon.com/kppinfo for more information).

To qualify for the 70-percent royalty terms, newspapers and magazines must satisfy several customer experience requirements, including:
- Customers can read the title on all Kindle devices and applications.
- Customers can read the title in all geographies for which the publisher has rights.

These new terms do not apply to blog publishers because existing terms are generally more advantageous for them.

Amazon also announced the Beta release of the Kindle Publishing for Periodicals tool, which allows publishers to more easily add their newspaper or magazine to the Kindle Store. Publishers can quickly create their account, add content and preview Kindle formatting prior to making their titles available for the fast-growing base of Kindle customers.


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