Check out Why Amazon Terrifies Publishers: Let’s Look at Royalties Statements over at Forbes magazine. George Anders gives a little insight into Amazon’s methods. He writes the following:
Amazon has a pretty clear-eyed view of what it will take to keep the book-reading habit alive in a new generation of consumers. As Amazon’s senior vice president for Kindle, Russell Grandinetti, recently told The New York Times, “Books don’t just compete against books. Books compete against Candy Crush, Twitter, Facebook, streaming movies, newspapers you can read for free. It’s a new world.”
It explains a lot of moves Amazon has made in the past. It might also offer clues as to what the future hold for readers, authors, and publishers. All in all, these are exciting times.