Revenue Share vs. Breakage: Calculating the Publisher's Cut in Subscription Services
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While the Breakage Model represents a brave, iconoclastic approach to revenue share, it sets the interests of the publisher at odds with those of the distributor. Publishers will desire the user experience of such services to facilitate immersive reading, at least to the point that the reader reaches the 10% threshold. The service provider on the other hand is incented to create an experience that engages and retains the subscriber within the service, but not necessarily immersed within any one title. It will be easy for the aggregator to shape the experience to drive more title-hopping.
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Andrew Brenneman
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