I understand completely the reason for the change and to be upfront (many authors in here already know this), I am one of the authors who submit many novellas. I still do and still will. Even with the new way of figuring the royalties for Kindle Unlimited, it is not only a very profitable way to publish, but it is also an excellent way to develop your skills in the craft.
But I disagree if you are suggesting that the average author makes more under the new system than he did the old (even if he/she only publishes full length novels.
Case in point: I currently have a full length novel (306 pages estimated by Amazon). As of five minutes prior to starting the reply, I have 1,596 KENP pages read today for that novel. That equates to approximately 6 copies (give or take). Based on past performance I estimate that todays Kenp reads will pay roughly $7.50 (As far as I can tell I make $5.00 per every 1 thousand pages read). Doing it the old way, the same six copies would have paid more than $8.00. So ... how is this better?
It's not. It is worse (obviously). On top of the pay being worse per novel read, an author is no longer paid for every copy moved, only for every page read. So, if an author moves 10 copies per day, but 1 or 2 of those readers, don't read it right away, or let it pile up in their queue with a bunch of other works, the author never gets paid at all. Again, how is this better for the author?
I guess my grumble is more with the authors who complained to get the policy changed than it is anything else. Now, everybody is making less. At least I cannot see how anybody could be making more. (Unless they are writing 6oo page novels. Even then, the amount of increase they are getting doesn't seem worth it (Unless their last name is Rowling).
***NOTE*** I also resent the implication that authors who publish novellas are 'gaming the system'. If I publish a 70 page novella and can sell it to customers for $3.99 and another author publishes a full length novel of 400 pages for the same $3.99, how is it that his work has the same value to paid customers, but less value to KENP readers?
It doesn't. It should have the same value in both places.