The end of last week saw the latest in a string of announcements that's been ongoing over many years and that can all be basically summarized as “Audible changes its royalty model.” You will remember that the last time this happened it was to announce a new model that effectively followed the Kindle Unlimited format (or indeed the class action settlement format!) of paying rights holders from a fixed pool (which might vary month to month but was fixed for each month). The so-called “new model” has had its fans and its detractors but has so far been a choice for rights holders to make.
ALLi News Editor Dan Holloway
That's what's changing. Per the ACX blog, “By end of year, the legacy royalty model will be discontinued. By that time, you must either choose to enroll your titles in the new model or discontinue distribution if you prefer.”
Key Dates and Decisions
That's one key date. There is another, more imminent one. From May 26, all ACX creators can choose to enroll their audiobooks into the new royalty model. The same ACX blog outlines the steps creators need to take in order to do so.
The big question of course is what this means. Audible/ACX of course tell the positive side and in particular express the benefits of being able to earn royalties for the same title in three different ways depending on the way readers listen to that title. Those being, for à la carte purchases, for all you can listen (AYCL) enrollments, and for monthly credits.
How the New Model Works
The way royalties work is based on the so-called “member value.” This is a combination of the plan the listener is enrolled in and any additional purchases they have made over and above that plan. The member value is then multiplied by the royalty rate of the creator.
Additional choices the new model offers are the ability to opt in to AYCL should they wish, enrolling exclusively for 50 percent royalties or nonexclusively for 30 percent, and suggest pricing of their titles.
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