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My understanding is that Amazon runs imprints, like Audible Originals [1], that basically act like a publisher. I.e., they buy the rights, produce the audio, pa

My understanding is that Amazon runs imprints, like Audible Originals [1], that basically act like a publisher. I.e., they buy the rights, produce the audio, pay the voice actor, and the author gets some royalty (presumably smaller than 40%). But my understanding is that the large publishers mostly do this themselves (and therefore have to pay the voice actor out of the 40% cut they get). Similarly, independent authors won't get access to this level of service; in some cases they're literally reading the book themselves, but they still only get the 40% cut (and that's with exclusivity). The reason why audiobooks are cheaper is due to the subscription model. That's the chief innovation that Amazon pioneered with Audible. Now, their clout certainly also had something to do with it, and the burgeoning Kindle ecosystem. But the issue of price is really a matter of subscriptions being stickier and keeping customers in the ecosystem longer, making it possible to make aggregate more money. It's the same business model as Netflix, Dropbox, Adobe CC, etc. [1]: https://www.audible.com/ep/audible-originals https://www.audible.com/ep/audible-originals

taeric 3y ago
I'd only rephrase your later paragraph to say that the reason it is cheaper is because Audible chased their marginal cost advantage of copies and drove for cheaper sales. Publishers have known of subscription models forever, such that they could have done this years ago. They didn't, because they chased the marginal costs of printing books so that that was their advantage. That is, the new advances in audio recording and digital distribution led to a vastly superior marginal cost environment that didn't exist back in the 80s/90s. Publishers decided not to lean in on that, and by the time Audible had demonstrated that it was a viable market, it was too late for them to squeeze them on license costs. I admit this sounds almost conspiratorial, but they literally colluded to try and force higher prices on ebooks. Such that I don't find this that beyond the pale.

taeric 3y ago

I'd only rephrase your later paragraph to say that the reason it is cheaper is because Audible chased their marginal cost advantage of copies and drove for cheaper sales. Publishers have known of subscription models forever, such that they could have done this years ago. They didn't, because they chased the marginal costs of printing books so that that was their advantage. That is, the new advances in audio recording and digital distribution led to a vastly superior marginal cost environment that didn't exist back in the 80s/90s. Publishers decided not to lean in on that, and by the time Audible had demonstrated that it was a viable market, it was too late for them to squeeze them on license costs. I admit this sounds almost conspiratorial, but they literally colluded to try and force higher prices on ebooks. Such that I don't find this that beyond the pale.