Amazon Offers Periodicals 70 Percent of Revenue

The battle for e-content has moved to a new phase. On Monday, Amazon.com said it will give a bigger cut of revenue for periodicals sold on its Kindle Store.

The new split will mean royalties of 70 percent for publishers, beginning next month. Although each publisher has had its own deal, most now receive half that amount.

‘Happy’ To Pay More

While the change will likely boost content in the Kindle Store, the Kindle e-reader hardware is shrinking as a relevant part of the equation. Amazon has released Kindle software to allow its content to be read on other devices, including Apple’s iPhone, iPad and iPod touch; Research In Motion’s BlackBerry; Android-powered devices; and Macs and PCs. Currently, newspapers and magazines for Kindle are only available for the Kindle hardware.

In fact, the 70 percent split only applies to publishers willing to offer their periodicals on all the platforms where Kindle content can be read, as well as in all territories for which the publisher has rights.

If a newspaper or magazine publisher is willing to make content available to all Kindle applications and around the world, Amazon Vice President Russ Grandinetti told The New York Times, “we are happy to pay you a higher royalty.”

Amazon’s vision for Kindle periodicals and books is Buy Once, Read Everywhere. To accommodate readers who might jump between devices, its Whispersync technology lets users sync across devices so they don’t lose their place.

As it woos publishers of periodicals, Amazon is also trying to make it easier to publish on the store. In addition to the new royalty split, the online retailer also announced a self-service tool that allows publishers to sell their periodicals in the Kindle Store.

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