Will Amazon.com (AMZN) Stock be Affected by New E-Book Author Royalty Plan?

NEW YORK (TheStreet) -- Amazon.com (AMZN) will reward self-published authors on its e-book platform by paying them based on the number of pages of their book that have been read by customers beginning July 1, according to CNBC.com.

"We're making this switch in response to great feedback we received from authors who asked us to better align payout with the length of books and how much customers read," Amazon.com stated.

Previously, authors who used Amazon.com's Kindle Direct Publishing were paid by how many times their books were borrowed, or how many times they were downloaded.

For their new payment model, Amazon.com is now using a complex calculation to work out royalty payments to ensure authors get paid the appropriate amount, CNBC.com added..

The e-commerce giant's new royalty policy on books published through the Amazon Lending Library or Kindle Unlimited follows music streaming service Spotify's policy where artists are paid per listen rather than by albums sold. 

In Tuesday's early morning trading session, shares are falling 0.15% to $435.62.

Separately, TheStreet Ratings team rates AMAZON.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate AMAZON.COM INC (AMZN) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and feeble growth in the company's earnings per share."

If you liked this article you might like

Amazon Said to Be in Talks With Pharmacy Benefit Managers

Cramer: Dominoes Are in Play Today

Analyst Rips Ralph Lauren Stock, Right After Glitzy Fashion Show

Apple, Amazon, Alphabet Charts Show Stress -- How to Protect Gains

Adobe Is a Horse -- Jim Cramer Explains Why