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Kuiper | 6 years ago
It used to be that if Blockbuster wanted to rent out Raiders of the Lost Ark to six different customers simultaneously, they needed to own 6 VHS copies of Raiders of the Lost Ark. Now, with streaming, Netflix doesn't have a finite number of "copies" that they can lend out at a time; if every single Netflix subscriber in the country decides that they want to start watching Indiana Jones right now, the only thing preventing Netflix from providing that is their bandwidth, because Netflix has worked out an arrangement with Paramount Pictures that allows them to do this.
Likewise, Amazon has an arrangement with KDP authors that says, "We lend your ebook out to as many KU subscribers as want it. At the end of the month we pay you based on how much people read your books." If an author doesn't like the terms of the KU program for any other reason, they are free to decline the subscription model and sell their ebooks through the regular "customer pays fixed price for ebook, I get money from sale" model. In fact, most authors don't opt into KU; there are a millions of Kindle books, and only tens of thousands of books in the KU program.
Because you pay a fixed subscription fee and the money gets divided between all the authors you've read, it's effectively zero sum: if Amazon wants to give more money to authors who wrote books that people dropped after the 1st chapter, that means less money for the authors who wrote books that people actually liked enough to read past the first chapter. Amazon has structured their program to reward authors for writing books that people consume more of, which seems like a good way of rewarding creators based on the value that they contribute to the platform. If you don't like it, don't opt in and instead sell your books the "normal" way.
grawprog|6 years ago
https://dvd.netflix.com/
They still offer this service.