Revenue Share vs. Breakage: Calculating the Publisher's Cut in Subscription Services
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The Breakage Model
In an effort to entice the participation of publishers who have been unimpressed by the Subscription Share Model's sometimes-paltry payouts, newer subscription aggregation programs have forwarded a radically different revenue share approach. In the so-called Breakage Model, the aggregator will pay the publisher the wholesale price for the title once the customer has read beyond a specified percentage of the book typically between 10% and 40%.
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Andrew Brenneman
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