I’m flabbergasted.
According to Dallas Morning News President and CEO James Moroney, Amazon wants to take quite a large chunk of dough from newspaper revenues on the Kindle. How much? Here’s a quote from Moroney’s Senate testimony:
The Kindle, which I think is a marvelous device, the best deal Amazon will give the Dallas Morning News-and we’ve negotiated this up to the last two weeks-they want 70 percent of the subscriptions revenue. I get 30 percent, they get 70 percent. On top of that they have said we get the right to republish your intellectual property to any portable device. Now is that a business model that is going to work for newspapers?
Amazon has lost their minds. 70%? Seriously? They want 70 cents for every dollar of newspaper revenue the Kindle brings in. Apple doesn’t even screw their partners over that badly! Why? Because they understand that they’re merely providing a store, not the content. Without the content, their store is nothing. Amazon just introduced their new Kindle DX – the official announcement is barely a day old – and it already looks like they’re doing everything they can to ensure the DX is a flop.
I can’t believe Amazon got ANY newspapers to agree to that deal. If I were in charge of a paper, I’d laugh in Amazon’s face and figure out how the industry is really going to be saved. Unreal.
[via Gizmodo]
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