Amazon Demands 70 Percent of Kindle Newspaper Revenues
During a U.S. Senate subcommittee hearing on the future of newspapers, James Moroney, CEO of the Dallas Morning News, said that Amazon demands 70% of subscription revenue from news papers.
Here is his comment:
“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?”
The video is embedded below.