More fuel for the fire. Macmillan is cutting royalties for authors on e-books to 20%, when the industry standard is more like 25%. John Sargent, CEO at Macmillan, sent out a letter to agents on Monday advising them of the change. Somehow the NYT got a copy of the new contract.
Says Richard Curtis, a literary agent who posted the letter on his blog, ereads.com:
“The point is whether we should be playing on such a low ballfield at all,” Mr. Curtis said, “and whether the industry should not really be thinking about a 50 percent royalty of net receipts.” He argued that because the cost to publishers of producing e-books was so low, authors should get a higher proportion of sale proceeds.
Indeed, Laurence J. Kirshbaum, a literary agent and former publishing executive, said: “I don’t really understand the logic since e-books really do not require any additional work on the part of the publisher.”
Please read the one comment at the bottom from Andrew Kennedy, as well. Go get ’em, tiger!