In a profile with The New York TimesDavid Blum a New York media veteran who is now heading up Amazon’s Kindle Singles division says that Amazon is bold for creating a business model which pays writers based on sales. And the service does. Authors are paid 70 percent of all sales through the store, Amazon takes 30 percent.

Kindle Singles is designed as a place where journalists and authors can publish works that are longer than your typical magazine article but shorter than a book. This includes essays, novellas and long form stories. The format has attracted the likes of Stephen King, Chuck Palahniuk, and Lee Child, among many others.

The New York Times points out that the business is profitable, having sold five million copies since it launched in January 2011. The Times even asserts, “…the program is as much about gaining entree into the literary world as it is about revenue.” Do you agree?