Joe Konrath, indie author and trailblazer of independent publishing, offers his insight into the new payout structure of Kindle Unlimited.
Under KU 1.0, Amazon was rewarding writers for enrolling in KDP Select. Amazon wanted as many titles as possible, to build their Kindle Unlimited catalog. Shorts are easier and faster to write than novels, so Amazon rewarded short stories by paying authors much higher for shorter works, way out of proportion with novels and with the paper short story market, in order to get more titles into KU so it appealed to more subscribers.
Under KU 2.0, Amazon is rewarding writers for being good writers. Amazon wants writers to hook readers for longer than 10% of the ebook. Amazon wants good, meaty novels, which my numbers point to readers liking more than shorts.
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