Hugh Howey, author of the bestselling, indie-original science fiction series Wool, has published an eye-popping, and important data-rich report on independent author earnings from ebooks sold on Amazon. Howey makes a good case that the "average" author earns more from a self published book than she would through one of the Big Five publishers, and, what's more, that this holds true for all sorts of outliers (the richest indie authors outperform the richest Big Five authors; less-prolific indies do better than less-prolific traditionals, etc).
Howey's report includes a lot of raw data and makes a lot of very important points. It certainly is an aid to authors wondering whether to do business with major publishers or go it alone. I read it with great interest.
I think that there are a couple of important points that Howey skirts, if not eliding them altogether. The most important of these is that all the authors Howey studies live and die by the largesse of one company: Amazon. This is the same company whose audiobook division, Audible, requires authors to lock their products to its store with non-optional DRM, and which has no real competitors in its space. So it is neither an angel by nature, nor is it subject to strong competitive pressures that would cause it to treat authors well when its own self-interest would cause it to treat them badly. As bad as it is to have a publishing world with only five major publishers in it -- a monoposony in which a tiny handful of companies converge on terms and practices that are ultimately more to their benefit than those of authors, it's even worse to have a world in which a single company controls the entire market. Read the rest