Originally Posted by RowdyZ
Amazon doesn't charge that much, the royality rate on a Kindle sale is 70% of sale price.
Rowdy, the royalty rate is 70% only on ebooks priced under $10. For books above $10, the rate is only 35%. This is Amazon's strategy to put pressure on publishers to lower the cost of ebooks, which will boost Kindle market share.
Many publishers and authors feel that, while Amazon's strategy is good for the customer in the short term, it has the effect of lowering the perceived value of books in general, which could weaken the book industry overall. It also has the effect of tightening Amazon's grip on all aspects of book publishing and selling.
So basically, it's a complicated area. I think Mason is saying, if he made the decision to lower 2+2 books to the price point Amazon wants, it would devalue all 2+2 books. It makes sense to me.