Amazon & Hachette: What Happened

The New Yorker takes a look at what happened between Amazon and Hachette and what it may all mean in the longer run.

[T]his may not be the real reason for the majority of writers to be in favor of the deal. Royalty rates often don’t come into play for authors, because publishing houses typically pay advances against royalties, and most authors never make back their advances—perhaps eighty per cent do not, [he] estimates, based on his conversations with agents. In other words, authors tend to make their money from advances against royalties, not from sales themselves.