Monday, March 1, 2010

E-book cost breakdown

The New York Times has a comparison of the economics of producing a book. It suggests that publishers make $4.05 on a typical $26.00 hardback book and $4.56-5.54 on a $12.99 eBook.

Interestingly, the authors make less on an eBook, while the publishers make more? That seems a bit odd! And do most authors really get $3.90 per book?

A quick search turned up some different rates, but seemed to be between 5 and 10% of the cover price, which suggests an author royalty on a $26 book is more likely to be around $2.60, and maybe even less (my own experience with trade paperbacks suggest it's less.)

This suggests that publishers are making more like $5.35. Not that I think publishers are having an easy time of it.

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