I have a dilemma, and maybe readers and other authors can help me resolve it. Maybe I'm just not looking at the situation from the broader perspective.
As you know, if you follow this blog or some of the other social media venues where I hang out, I spend a lot of time and energy -- and money -- on adding audio books to my considerable backlist. By the end of this year, I’ll have spent something over
$20,000 commissioning audio books through ACX and Audible.com. I'll have a total of 15 audio books, 12 of which I've personally commissioned. I think it’s
obvious I believe in audio books and that I think they’re a worthwhile
investment for an author or a publishing house. The response from readers has been everything I could have hoped for.
I'm not sure I would have ventured into commissioning audio books had I not discovered
ACX. Which is to say, I always planned to have the Adrien English books made into audio, but that's as far as my thinking went. Anyway, ACX is a division of
Audible.com (which is owned by – surprise! – Amazon.com). ACX is something new
and innovative in audio book production. It's a creation exchange, a sort of go
between for rights holders (that would be authors) and audio book producers
(narrators/production companies). The finished books are either sold exclusively through Audible,
Amazon and iTunes for a 50% royalty rate OR the rights holder declines the
exclusive deal and gets a significantly lower royalty rate and has to go
through the hassle of listing their work on Amazon and iTunes and other
vendors all by their lonesome. You can pay for production outright – which is what I’ve done in all
but one case – or you can try to find a producer/narrator to take a royalty
share with you (in which case you have no choice but to make your audio book
exclusive to ACX/Audible for seven years).
Now for the good news. Despite some growing pains, ACX does
exactly what it promises – exactly what you would hope! It’s simple to use and
a great way to find and contract quality narrators and producers – especially
if you’re paying for production and not asking someone to gamble their time and
talent. The books get listed within a few weeks of completing production and
royalties are paid monthly. Plus there are “bonuses” for authors who lure new
customers to Audible (based on someone signing up for Audible’s subscription
service and buying your book as one of their first three purchases). You can also earn a dollar an audio book if you sign up to be an Audible Author -- and now I understand why Audible pays that dollar incentive a book - because the way things are going, most authors won't be earning much beyond that dollar.
Now lest it sound like my problem is audio book sales, no. Not at all. I saw my first two
titles earn out within a couple of months of going live, and that was what decided me that ACX and
Audible looked like a pretty solid investment. I have every faith that the
audio book market is just going to get bigger and better. Accordingly, I
committed another ten projects exclusively to ACX and Audible. Like I said, by the end of
this year, I’ll have a total of 12 audio books available to readers.
But, alas, I forgot to include Amazon’s quest for world
domination into my calculations, and this is where everything gets complicated. Or at least it feels complicated to me, but maybe I'm just not looking at the big picture.
Amazon devised this little thing called
“whispersync.” It’s sorta cool, actually.
According to Audible’s website:
Whispersync for Voice
is a breakthrough technology that allows you to switch back and forth between
reading a Kindle book and listening to the companion Audible audiobook without
losing your place.
That means you can
keep the story going on the books you love, and enjoy more of them. In addition
to remembering position, Whispersync for Voice keeps your notes and bookmarks
across devices as well.
With Whispersync for
Voice you can read on any Kindle or Kindle app and then switch to listening on
the Audible app for iPhone or Android and any Kindle Tablet (Kindle Fire HD
8.9", Kindle Fire HD 7", Kindle Fire 2nd Generation, and Kindle Fire
1st Generation) or Kindle E-reader (Kindle Touch and Kindle Keyboard).
So…yeah. Cool. Not essential, but a fun little gimmick. I really never gave it a thought because whispersync is not something I particularly need or want or care about.
I should have given it a thought, though, because it creates a problem for ACX customers, and by ACX's customers, I mean authors and narrators. I mean me. Amazon, in its perennial quest to crush all competition
through loss leading, came up with the idea of encouraging readers to try out
these whispersynced audio books by knocking the price of audio books down to
$1.99 if the (current version) kindle ebook is also purchased.
Now that’s a terrific incentive,
no question. Here’s the catch. The author has zero control over the pricing. Although it's communicated as though Audible is doing us a huge favor with this bedrock pricing, they don't allow us to opt in or out. That pricing isn’t isolated to first
books in a series or a certain percentage of an author’s backlist. As far as I could ascertain speaking to ACX, it isn’t
time limited. It isn’t optional.
And the plan is to make the entire Audible
catalog (those books linked to kindle editions, anyway) available through
whispersync.
Now, it’s obviously not whispersync, I have an issue with.
I’m all for technological advancement – I’m even for pricing incentives. And I
guess if my publishers were footing the bill for my audio book production, I
wouldn’t mind only making…say, thirty to fifty cents an audio book. I wouldn’t
be thrilled, but it wouldn’t be a bad investment. It wouldn’t be costing me
money that could have – apparently should have -- been invested elsewhere.
Yes. Costing me money. Let’s say I’m paying $2000. to
produce an audio book, and the first month I sell maybe 100 copies
netting around $10.00 each – of which I
receive my 50%…so $500. I
don’t earn back my production costs. And within the following month or so, the book is
whispersynced and now kindle readers can buy the audio book for $1.99. My cut would
be half of that.
Oh! And if I'm doing a royalty share with a production company, we're each splitting that .99 cents. It's hard to imagine many production companies opting for royalty shares under those terms. And, given those terms, it's hard to see many authors continuing to pay for productions up front when the chances are so slim for the productions earning out in the near future.
This is one of the really disappointing bits from my standpoint. If the audio books don’t earn out, I can’t
commission more productions.
(Actually, that should probably be the least of my concerns, right?)
Now there are workarounds. An obvious one is don’t
commission audio productions through ACX, or if you do commission them through
ACX, don’t hand over exclusive marketing rights. That whole 50% royalties thing
becomes moot if you can’t control the pricing of the audio books you “own.”
Audible is a little vague about whether they will change
pricing on books they don’t control exclusive rights to: At all times we reserve the right to
change the price of content as we see fit whether the work is exclusive or
nonexclusive to Audible.
Hmm.
I’m guessing they’re still trying to figure that one out.
Another workaround is to add music or additional materials
to the audio production. ACX discourages this, but maybe one reason they
discourage it is because it makes whispersync harder.
I could hold back the kindle release until the audio book
has earned out. Which is to say, I would still release in kindle format, only I would sell kindle format strictly through Smashwords and other vendors until the audio books had earned out.
I could try a kickstarter campaign for particular audio
books – Boy With the Painful Tattoo,
for example. That way at least I
wouldn’t lose money on the deal. But what would I be offering kickstarter contributors? It's not like I can supply them copies of the audio book they've just paid for.
The most obvious workaround is the one I like least, but it's the immediate default position. No more single title works. I’ll only do print collections
where there is no corresponding kindle book – as with
Armed and Dangerous or
In
From the Cold. If ACX allowed me the choice of opting into whispersync – or
only offered the dirt-cheap pricing for a limited time -- that would be different.
I’m not so penny-foolish that I can’t see there aren’t benefits to bundling
ebook and audio together, especially on slower selling titles.
It’s not having
any choice that makes me hostile.
I don't like paying for the privilege of building Audible and Amazon's growing catalog. Is it unreasonable of me to want to earn my investment back?
Personally, I think Amazon's math should give all authors considering producing audio titles through ACX serious pause -- as it should give all narrators serious pause about accepting a royalty share deal (even assuming a stipend is offered, it's unlikely to cover a narrator's production costs). But am I missing something here? Is it worth it to lose money on the front end if I help to build a huge market for audio books and my own significant audio backlist?
I’m not forgetting that I still earn the regular (net)
fifty percent on sales at Audible and iTunes (yeah, but let’s not even get into
how Audible calculates royalties earned on membership credits). The majority of
my audio sales come through Amazon, just like the majority of my ebook sales
come through Amazon.
I should also point out that I have nothing against
incentive pricing. I read Joe Konrath's blog! But for me, incentive pricing is marking some of my titles
down so that more people will try them and then buy the rest of my backlist at
its regular price. That way I could, you know, make money. For Amazon, incentive
pricing is making audio books so cheap that no other company can compete.
Audible and Amazon are not concerned with the financial success of individual
authors, and the fact that I’m slamming on the brakes on future audio projects
with them is not going to be a concern for them. ACX had a record year last
year, and this year looks to surpass those numbers.
Granted, many if not most of the authors flooding in through ACX's gates are unaware of the whispersync pricing. I certainly had no clue, and it took me a couple of months to work out why, though I was adding titles to my audio catalog, my monthly royalties weren't going up. That's right. I've got SEVEN titles live right now, and this month's royalty check was about what I earned the first month I began this venture.
Would Joe Konrath keep publishing through Amazon if Amazon marked all his titles down to .99 cents without his consent?
In fairness, if I was a mega-selling author, this would not
be an issue. For one thing, my whispersynced audio books would be priced at $3.95
not $1.99, and I’d be selling thousands of copies the first month, so the audio
books would earn out and everything else would be gravy. Tiny spoonfuls of
gravy, but gravy nonetheless.
Instead -- like the vast majority of ACX clients -- I’m just your average midlist author working in a
niche genre, and I don’t sell thousands of copies in the first month. It’s
doubtful I’ll sell more than a thousand copies of any audio book title in the first year.
That said, I’m still a big fan of audio books, and I know that you, my readers, are loving these audio books and asking for more. I will
certainly be commissioning more of them in the future -- but right now whether I
commission them from ACX (once the current contracts are filled) is in doubt.
But should it be? Am I missing something here? If you were me, would you keep making audio books through ACX? And if so, why?