Amazon Adopts Apple’s App Store Revenue Split for Kindle Content

Amazon KindleThe looming Apple tablet is making a variety of hardware, software and content developers nervous—at least the ones who aren’t in cahoots with Apple. With competition heating up in the digital publishing world, big names and eReader forefathers like Amazon are shaking in their boots the best part. As of June 30, authors and publishers will receive 70 percent of a book’s list price, exclusive of delivery costs.

Amazon seemed to be inspired by Apple’s App Store 70-30 share of revenue, and they’re not the first ones to adopt that business model after seeing Apple’s success. The Apple Insider reports that AT&T also plans to adopt the 70-30 split  for software sold via its new app platform, and Intel’s AppUp Center for Atom processor-powered netbooks.

Amazon says the average $8.99 book would earn the content provider $6.25, while under the previous plan they would have taken a measly $3.15—if you factor in the cost of delivery at 15 cents per megabyte.  Amazon says the book’s list price must fall between $2.99 and $9.99 and be at least 20 percent below the lowest price of the physical edition of the book. It also has to sell on Amazon for the same price, or less, as it does with competing book sellers.

Amazon is doing something that we’ll be seeing a lot of in the coming months—they’re keeping the lid tight on e-book prices now that 2010’s pending competition has revealed itself. With the Barnes & Noble Nook, Sony’s lineup of eReaders, and newcomers like the Que proReader, Samsung’s new eReaders and Asus’ two newly announced digital book readers, Amazon should be in for a extremely competitive 2010.

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