I wrote earlier about what I dont like about Amazons Kindle Owners Lending Library program (think pay-for-performance) and a recent interview I did with Logos CEO Bob Pritchett helped crystalize where this model is (hopefully) heading.
First of all, I now figure Amazon could just leave the flat fee mode in place for those publishers who are OK with it. Obviously there are some smaller publishers who feel they dont need pay-for-performance and theyre happy with the flat fees Amazon offered. But since the service is missing content from so many other publishers Amazon needs to start thinking about other options for this program.
As Bob Pritchett mentioned in that interview, the cable TV model is a good one to follow here. Think of the existing Lending Library program as basic cable. Its part of the Amazon Prime subscription package and doesnt cost the customer any more to access the current library of books. But just as there are sports packages and movie packages for cable TV, Amazon should offer verticals content packages and charge add-on fees.
I read a lot of sports books and Id gladly pay $10/month for unlimited access to baseball, hockey, etc., books from all the publishers missing from Amazons current Library program. I also like to read books on U.S. history and would be willing to pay an additional $10/month for unlimited access to this list as well. So thats $20/month, or $240/year Id pay for this sort of program. Btw, thats actually more than what I pay every year for sports and history ebooks. So why would I pay more for this than I do today?
Two reasons: selection and what Ill call ‘dud avoidance.’ Both of those reasons are somewhat related. Even though I never buy an ebook till Ive read the free sample I still find books I lose interest in beyond the sample end point. Sometimes I feel guilty about the purchase and force myself to finish. Other times I just delete the book from my device and try to forget about it. In an all-you-can-eat, monthly subscription model though Id be more willing to try (and potentially abandon) books that dont disappoint me till I get past the sample material. And since there would be so many more choices available that dont cost any more to explore (because of the monthly flat fee) Im likely to expand my reading and discovery horizons.
Pay for performance is key here. As a publisher Id want to make sure my authors are getting compensated based on how popular their books are. Thats how it works in the print world and thats how it works with the better ebook subscription programs (e.g., Safari Books Online). And since Amazon would be charging more for these verticals (as opposed to just stretching that $79 Prime subscription even further) they should be willing to pass that revenue along to publishers using a pay-for-performance rev share model. If they dont, I hope B&N, Apple, Google or some other ebook publisher will step up to the plate and offer this type of package.
