[mirimir]

It doesn't jive with Amazon's income from the book. I doubt that users pay for books on a percentage basis. So if someone buys a book, but doesn't read it, then Amazon gets the income, but isn't paying royalty on it.

That seems illegal.

[Kuiper]

Note: this thread is about Kindle Unlimited, which has a different monetization/payment model than regular Kindle ebooks. KU readers do not "buy" KU ebooks, any more than Netflix users "buy" the TV shows that they are streaming.

If someone pays $10/mo for access to a library of tens of thousands of books but doesn't actually read any of them, then Amazon gets income without having to pay royalties, in the same way that Netflix still gets your money if you subscribe but don't watch anything. This is true even if you decided to subscribe to KU/Netflix because "Oh, I should get around to reading Harry Potter/watching Stranger Things" and then don't get around to actually reading Harry Potter or watching Stranger Things. This is very much legal.

[mirimir]

OK, that wasn't clear to me. So I guess it makes sense.

But does Netflix pay partial royalties on films, based on percentage viewed?

[Kuiper]

Unclear. We know how authors get paid for Kindle Unlimited because KDP is a self-publishing platform that anyone can use and Amazon has pages that explain everything when you go through the KDP signup process (plus reports from literally hundreds of authors who are enrolled in the program and post on forums/facebook groups about it). We have significantly less insight into the closed-door negotiations that happen between Netflix and Paramount Pictures to allow Indiana Jones movies to appear on Netflix; there are strategic reasons for both sides of the deal to want the details to be kept secret.