Late last year Amazon launched KDP Select, a new program open to Kindle owning Prime members. Kindle owners could suddenly borrow one of a select number of Kindle titles. Authors and publishers who signed up for the program get paid for ech loan; they receive a share of a fixed pool of money ($600,000 in February).
The loan payment went up in February to $2.01 per loan, from $1.60 in January.
Boy is my face red. I predicted last month that payments would drop, and that January’s $1.60 per loan would be the high point. Nope. I clearly overestimated the growth in popularity that KDP Select would see. I thought that Kindle owners would keep joining the program, but it’s clear now that some have dropped out.
KDP Select saw 427 thousand loans in January and only around 300 thousand loans in February. Even with the shorter month, that is a noticeable dip is the number of loans. It might look like this program is dying, but I happen to like the fact it shrank. I’m rooting for the authors. If more money went into your pocket, it’s a good thing.
On the other hand, the downside to KDP Select is that Amazon also gets an exclusive on selling the content; it cannot be listed elsewhere. And as we’ve said before, exclusivity is rarely a good idea.