The “AudibleListener Allocation Factor” means the total of all membership sales receipts derived from sales of all content sold by Audible in the applicable accounting period, less any cash incentives, promotional discounts, device subsidies or rebates, sales or use taxes, excise taxes, value-added taxes, duties and returns, divided by the total a la carte value (as determined by Audible's applicable a la carte price for the Audiobook at the time the AudibleListener Allocation Factor is calculated) of the membership sales of all content sold by Audible in the applicable accounting period. “Membership Net Sales Receipts” means, for each Unit, the monetary amount obtained by multiplying the AudibleListener Allocation Factor (as defined below) by Audible's a la carte price for the Unit at the time the AudibleListener Allocation Factor is calculated. I will make my point in a minute.įrom the “Audiobook License and Distribution Agreement: You don’t have to understand it yet but just read it, please. It’s important for an audiobook publisher to read the Audible Listener Allocation Factor (ALAF) clause in the ACX/Audible agreements (reproduced below). Audible Numbers are “ALAF” (pun intended) I promise to keep things simple with high-level explanations. It’s the “AL” category on ACX earnings statements. This post is about the earnings rights holders receive when an Audible member exchanges a credit for an audiobook.
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