Amazon Inc.'s (NASDAQ:AMZN) latest offering, the "Kindle Unlimited" program, has been openly welcomed by consumers but has caused a stir among many authors, particularly the self-publishing ones. This Kindle Unlimited service (more commonly known as KU) allows you access to all the books you can possibly read in a month. For a fee just below $ 10 (monthly), Amazon's Kindle users are able to get unlimited access to a library of a little less than 700,000 books.
With Spotify and Netflix Inc.'s (NASDAQ:NFLX) enormous success, KU was designed to offer something similar to its users for a low price. But sadly, this low price translates into reduced profits for the authors, which has angered and upset most. Self-published writers that use this service are forced to sell on Amazon exclusively, thus shutting down opportunities to earn a living from other platforms such as Apple Inc. (NASDAQ:AAPL), and Barnes & Noble, Inc. (NYSE:BKS).
Amazon has not officially commented on the developing story, but the authors have not been shy to voice their opinions through various message boards and news reports. One particular author has claimed that he has seen his income plummet almost 75% once the Kindle Unlimited service was put into effect. Young people who left their regular jobs to pursue their dream of becoming renowned authors have no option but to return to the workforce, which in turn gives them less time to focus on their book-writing career.
While some may feel that the authors are not obliged to participate in the program and can choose to opt out anytime makes it non-issue, the problem is a little more complicated; Amazon is such a dominant force in the publishing world that it has monopolistic power over the whole industry. Since KU is popular for its readers, it will most certainly benefit the few authors who are able to take a hit on profits and stay on the program, further hurting the ones who aren't on it.
This isn't the first time this has happened though. Amazon has had disagreements with authors in the past as well. Mainstream novelists often voiced their concern to the public and the media. In its long-battled feud with publishing company Hatchette, Amazon actively engaged in steps to discourage the sale of certain book titles. Given the history, people fear that if they do not take part in the KU program, they could end up being blacklisted and their books will not be promoted.
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