Erotica rocks; Scribd can't handle it
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parthenogenesis
Aug 19, 2015, 8:11:36 AM8/19/15
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Sagacious
Aug 19, 2015, 9:12:20 AM8/19/15
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I suspect that they are now going to see their subscription base begin to dry up. They should have known why the romance section at the book store is the largest before they set up the service.
On Wed, Aug 19, 2015 at 8:11 AM, parthenogenesis <spiritu...@gmail.com> wrote:
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Rock on into the night.
Crumbly Writer
Aug 19, 2015, 9:52:02 AM8/19/15
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Ha-ha. I love their business models. 'Let's let everyone read as much as they want to. Everyone knows that people are stupid and won't read anything." You'd think a subscription service would be overjoyed when they experience success. Instead, they're punishing the very people who are making them successful. Maybe they should specialize in automotive repair books--after all, those readers would only be likely to read one or two books based on which cars they own.
So long, Scribd, it was nice never having used you!
parthenogenesis wrote:
So long, Scribd, it was nice never having used you!
parthenogenesis wrote:
Daniel
Aug 19, 2015, 9:52:05 AM8/19/15
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I didn't know about the Scribd subscription before today, but a quick look at their page and reading the Guardian article let me know everything I needed. It's pretty clear, that this is a business model which has been doomed to failure from the beginning. While Scribd offers an unlimited flat-rate to the user, it looks like the company ends up paying for every book which has been read.
A power user is usually cross-financed by less active subscribers. The company accepts these people in moderate numbers, which usually works just fine because the amount of people is reasonably small. But if the number of very active readers reaches too high a percentage of the user-base, the mixed calculation won't be profitable anymore.
Thus, Scribd can do three things:
1.) Get rid of the largest group of power users, by removing the content they consume.
2.) Raise the subscription fees. This is a risky move, because it impacts all subscribers and may end up costing a number of desirable customers, who look for cheaper alternatives.
3.) Change the payout scheme to authors.
It's clear that number one is the easiest solution, because it does (hardly) impact the other subscribers, who aren't interested in romance novels at all.
I'm of the opinion though, that the Scribd business model doesn't make sense, because all the risk lies in the hands of the company. If they make a mistake in the mixed calculation, which impacts both the price of subscription and what they can offer their customers, they could end up losing money. Even if no mistake was made, an evolving market or a growth of a particular interest group among the subscribers can catch an unprepared company out. Amazon, Spotify, et all do it differently, because they pay out a percentage of their revenue (I don't know if before or after costs though) from the service. That's the only reasonable way to actually run a subscription service without limitations. There the decision lays with authors: do they earn enough money or recognition from their participation in these services or not?
On Wednesday, August 19, 2015 at 2:11:36 PM UTC+2, parthenogenesis wrote:
A power user is usually cross-financed by less active subscribers. The company accepts these people in moderate numbers, which usually works just fine because the amount of people is reasonably small. But if the number of very active readers reaches too high a percentage of the user-base, the mixed calculation won't be profitable anymore.
Thus, Scribd can do three things:
1.) Get rid of the largest group of power users, by removing the content they consume.
2.) Raise the subscription fees. This is a risky move, because it impacts all subscribers and may end up costing a number of desirable customers, who look for cheaper alternatives.
3.) Change the payout scheme to authors.
It's clear that number one is the easiest solution, because it does (hardly) impact the other subscribers, who aren't interested in romance novels at all.
I'm of the opinion though, that the Scribd business model doesn't make sense, because all the risk lies in the hands of the company. If they make a mistake in the mixed calculation, which impacts both the price of subscription and what they can offer their customers, they could end up losing money. Even if no mistake was made, an evolving market or a growth of a particular interest group among the subscribers can catch an unprepared company out. Amazon, Spotify, et all do it differently, because they pay out a percentage of their revenue (I don't know if before or after costs though) from the service. That's the only reasonable way to actually run a subscription service without limitations. There the decision lays with authors: do they earn enough money or recognition from their participation in these services or not?
On Wednesday, August 19, 2015 at 2:11:36 PM UTC+2, parthenogenesis wrote:
Invid Fan
Aug 19, 2015, 10:08:10 AM8/19/15
to storiesonline
On Wednesday, August 19, 2015 at 9:52:05 AM UTC-4, Daniel wrote:
Thus, Scribd can do three things:
1.) Get rid of the largest group of power users, by removing the content they consume.
2.) Raise the subscription fees. This is a risky move, because it impacts all subscribers and may end up costing a number of desirable customers, who look for cheaper alternatives.
3.) Change the payout scheme to authors.
Ah, the Netflix formula. Any business that sells unlimited something for a fixed price makes more profit the less its customers use it. That's just Business 101. For every customer taking full advantage of the buffet, restaurants need a few who just get a plate of the cheaper items. If not, the quality of the items offered goes down to compensate.
Crumbly Writer
Aug 19, 2015, 10:13:09 AM8/19/15
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I made my books available on Scribd when they first began. I never sold a single book on the service, and ended up removing my books. It's never been very successful, as like parthenogenesis, few people even realize that it exists. About all they accomplished was convincing Amazon they could make money off the same technique.
Saying, 'we have an unlimited reading service, but it's only open to people who don't read' is the same thing as offering 'unlimited' data plans that get throttled as soon as you go over an unspecified download amount. It's a technique known as 'bait and switch'. They promise one thing, having no intention of honoring it.
Saying, 'we have an unlimited reading service, but it's only open to people who don't read' is the same thing as offering 'unlimited' data plans that get throttled as soon as you go over an unspecified download amount. It's a technique known as 'bait and switch'. They promise one thing, having no intention of honoring it.
Switch Blayde
Aug 19, 2015, 10:58:10 AM8/19/15
to storie...@googlegroups.com
The Amazon KU program makes a lot more sense to all the parties involved -- the provider, the readers, and the authors. And it's a sustainable business because it doesn't assume people will pay for the service and not use it, therefore get burned when they do.
Although my novel has always been exclusive to Amazon, I didn't elect to have it in their Select/Unlimited program. That is, until recently. An author on wattpad says he makes more money on KU revenue than sales royalties. So far I haven't seen any activity on KU, but I don't market my book either.
Switch
["Sexual Awakening" (full length novel) at: http://www.amazon.com/dp/B00L1VHIZC ]
Date: Wed, 19 Aug 2015 05:11:36 -0700
From: spiritu...@gmail.com
To: storie...@googlegroups.com
Subject: Erotica rocks; Scribd can't handle it
Although my novel has always been exclusive to Amazon, I didn't elect to have it in their Select/Unlimited program. That is, until recently. An author on wattpad says he makes more money on KU revenue than sales royalties. So far I haven't seen any activity on KU, but I don't market my book either.
Switch
["Sexual Awakening" (full length novel) at: http://www.amazon.com/dp/B00L1VHIZC ]
[stories at http://storiesonline.net/auth/Switch_Blayde ]
[Twitter at https://twitter.com/swblayde ]
[discussion group/blog at http://groups.yahoo.com/group/switch_blayde_group/ ]
Date: Wed, 19 Aug 2015 05:11:36 -0700
From: spiritu...@gmail.com
To: storie...@googlegroups.com
Subject: Erotica rocks; Scribd can't handle it
Tim Merrigan
Aug 19, 2015, 3:21:06 PM8/19/15
to storie...@googlegroups.com
On 2015-08-19 06:12, Sagacious wrote:
I suspect that they are now going to see their subscription base begin to dry up. They should have known why the romance section at the book store is the largest before they set up the service.
And, I suspect, were it not for local laws and social stigma, porn
and erotica sections would be just as large.
Crumbly Writer
Aug 19, 2015, 4:08:21 PM8/19/15
to storiesonline
The Amazon method works, because they're trading free books and movies for increased sales (of retail items). However, Amazon has Never revealed what they make on it. The only thing they'll say is 'another million signed up for the service'. But that's just a shell game. Opening up in Timnucktoo gives you more members, but not much in profits.
Has anyone heard whether their new algorithm (of paying authors by how much is read) produces better rates for novels. Or is Kindle Unlimited still for novelettes of only 10,000 words?
Switch Blayde
Aug 19, 2015, 4:54:04 PM8/19/15
to storie...@googlegroups.com
I disagree. Amazon makes money on the monthly subscriptions. But they can't lose money like Scribd because they pay out based on the pool of money (subscriptions). So if a huge number of books are read for free, they just pay out less to each author who had pages read. If their subscriptions go up, and therefore the pool of money goes up, the authors get paid more. That's the way it should work.
The new method, to my understanding, makes the playing field level between long and short pieces since they now pay by the page.
The new method, to my understanding, makes the playing field level between long and short pieces since they now pay by the page.
Switch
["Sexual Awakening" (full length novel) at: http://www.amazon.com/dp/B00L1VHIZC ]
[stories at http://storiesonline.net/auth/Switch_Blayde ]
[Twitter at https://twitter.com/swblayde ]
[discussion group/blog at http://groups.yahoo.com/group/switch_blayde_group/ ]
> Date: Wed, 19 Aug 2015 13:08:21 -0700
> From: crumbl...@gmail.com
> To: storie...@googlegroups.com
> Subject: RE: Erotica rocks; Scribd can't handle it
> From: crumbl...@gmail.com
> To: storie...@googlegroups.com
> Subject: RE: Erotica rocks; Scribd can't handle it
>
> The Amazon method works, because they're trading free books and movies for increased sales (of retail items). However, Amazon has Never revealed what they make on it. The only thing they'll say is 'another million signed up for the service'. But that's just a shell game. Opening up in Timnucktoo gives you more members, but not much in profits.
>
> Has anyone heard whether their new algorithm (of paying authors by how much is read) produces better rates for novels. Or is Kindle Unlimited still for novelettes of only 10,000 words?
>
Crumbly Writer
Aug 19, 2015, 5:51:55 PM8/19/15
to storiesonline
My understanding of the situation (since Amazon never discusses it), is that the main engine behind Amazon Unlimited, are retail purchases, though that's also offset by the free shipping. I'm not sure on the books, but I've always assumed that was an 'accepted risk' on the part of Amazon in an effort to bring in ever increasing numbers of people. Amazon continues to break must rules of business, as they scratch out a minimal profit but consume larger and larger pieces of the industry sales. Any other business would have bankrupt several times by now, but Amazon survives by squeezing the service providers (music, book, film and most importantly, retail).
However, unlike Apple which could buy up virtually any competitor, Amazon could be in a world of hurt if those sales ever drop--which is why they launched the 'Unlimited' segment of their business. Buy giving away the lower volume items, they seal users in to purchasing more ("I've already paid for membership and I've got free shipping, so what the heck. I'll buy it!")
My main question, is I haven't heard much discussion about authors' sales (profits) under the new 'pay by volume' model. Are authors of full sized novels making more money, or is the model still titled to the short books? From the discussions I had in other forums, the authors of full sized novels eschew the service, so no one had any actual empirical numbers.
However, unlike Apple which could buy up virtually any competitor, Amazon could be in a world of hurt if those sales ever drop--which is why they launched the 'Unlimited' segment of their business. Buy giving away the lower volume items, they seal users in to purchasing more ("I've already paid for membership and I've got free shipping, so what the heck. I'll buy it!")
My main question, is I haven't heard much discussion about authors' sales (profits) under the new 'pay by volume' model. Are authors of full sized novels making more money, or is the model still titled to the short books? From the discussions I had in other forums, the authors of full sized novels eschew the service, so no one had any actual empirical numbers.
Switch Blayde
Aug 19, 2015, 6:29:48 PM8/19/15
to storie...@googlegroups.com
I think you're talking about Amazon's Prime. With Prime, you get the Unlimited free. But can't you simply subscribe to Unlimited?
The full-size novels vs novellas doesn't apply anymore now that they pay by page (the only thing I'm not sure about is if they still have the 10% read minimum to get paid. If they do, it slightly favors shorter work because you get to the 10% quicker).
I believe this is the first month for this pay-for-page-read method. This month's pool of money is $11.5 million, their largest to date.
An author on wattpad says he makes more from Unlimited than from his book sales. I don't know if he's the exception. And that income was under the old methodology, not the pay-by-page.
The full-size novels vs novellas doesn't apply anymore now that they pay by page (the only thing I'm not sure about is if they still have the 10% read minimum to get paid. If they do, it slightly favors shorter work because you get to the 10% quicker).
I believe this is the first month for this pay-for-page-read method. This month's pool of money is $11.5 million, their largest to date.
An author on wattpad says he makes more from Unlimited than from his book sales. I don't know if he's the exception. And that income was under the old methodology, not the pay-by-page.
Switch
["Sexual Awakening" (full length novel) at: http://www.amazon.com/dp/B00L1VHIZC ]
[stories at http://storiesonline.net/auth/Switch_Blayde ]
[Twitter at https://twitter.com/swblayde ]
[discussion group/blog at http://groups.yahoo.com/group/switch_blayde_group/ ]
Date: Wed, 19 Aug 2015 14:51:55 -0700
From: crumbl...@gmail.com
To: storie...@googlegroups.com
Subject: Re: Erotica rocks; Scribd can't handle it
James Lloyd
Aug 20, 2015, 12:24:52 AM8/20/15
to storiesonline
I looked at the article. The e-reader in the picture belongs in a museum.
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