The Economics of Recipe Royalties: How Subscription Platforms Pay Content Creators

Most content creators struggle with digital monetization, especially in industries where traditional models have been disrupted. CKBK founder Matthew Cockerill solved this challenge by adapting Spotify's royalty pool system to cookbook publishing, creating sustainable revenue streams for authors while building a comprehensive platform for users.

On the Levels Podcast, Matthew explained how CKBK's revenue-sharing model works and why it benefits both creators and platform users. His approach offers a blueprint for any subscription platform looking to fairly compensate content creators while maintaining profitable operations.

The Traditional Publishing Problem

Traditional cookbook publishing operates on an outdated model where authors receive advances and royalties based on print sales, but struggle to monetize their content once books go out of print.

"What happens is after about five or ten years the books just get pulped and thrown away and it's not possible to buy a new copy of those books and that is kind of crazy because a lot of these books are really really valuable and really really useful."

This waste represented both lost income for authors and lost access for cooking enthusiasts who couldn't find classic cookbooks that had disappeared from print.

The Spotify-Inspired Solution

CKBK adapted the streaming music industry's royalty pool model to cookbook content, creating ongoing revenue for authors from both new and classic books.

"It's very much similar to Spotify or for example Amazon runs a service called Kindle Unlimited and in both those cases there's effectively a royalty pool which is some agreed share of all the subscription revenue coming in goes into the royalty pool and then that is divided proportionately based on usage between the licensors."

This model provides consistent income streams for content creators while giving users access to comprehensive libraries without per-item pricing decisions.

How the Royalty System Works

Every quarter, CKBK distributes a predetermined percentage of subscription revenue to content creators based on how much their content was actually used by subscribers.

"Every quarter our licensors, which we have several hundred, they range from really big publishers who have many dozens of books on the platform through to individual chefs who might have one or two books on the platform and they all get a statement showing what proportion of the usage their books accounted for and therefore how that translates into a fraction of the royalty pool."

This usage-based approach ensures that popular content generates more revenue while maintaining incentives for quality creation.

Measuring Content Usage

Defining "usage" fairly requires careful consideration of different user behaviors. CKBK tracks access to content "chunks" - whether recipes, technique explanations, or reference materials - rather than simple page views.

"We have all the content from the books, not just the recipe content, but a lot of the reference content and narrative material as well. But it's all divided into chunks. So essentially, when someone accesses one of those chunks, that counts as a usage."

The system also weights extended engagement more heavily than quick browsing, recognizing that users who print recipes or spend significant time cooking are deriving more value.

Preventing Gaming and Manipulation

Any usage-based royalty system faces potential manipulation, so CKBK built safeguards to ensure fair distribution.

"Now, obviously, sometimes people spend a lot longer on a recipe if they're cooking it versus if they're just clicking through. And so we account for that to say if you have an extended view by maybe you're printing a recipe or maybe you're cooking the recipe. But we don't make it so that if you access the same recipe 100 times, it counts 100 times because for a start, that would make it bit vulnerable to manipulation."

These safeguards protect honest creators from artificial inflation while maintaining accurate usage measurement.

Benefits for Content Creators

The royalty pool model provides several advantages over traditional publishing economics. Authors earn ongoing revenue from their work rather than just upfront advances, and out-of-print books can generate income again.

"We were able to put license agreements in place with all kinds of authors themselves who were very, very happy to see their books being made available."

Individual authors can license their work directly, retaining more control and potentially earning higher percentages than traditional publisher arrangements.

Diverse Creator Relationships

CKBK works with everyone from major publishers with dozens of titles to individual chefs with single cookbooks, creating opportunities for creators at different career stages.

This diversity benefits users who get access to both established classics and emerging talent, while providing creators with multiple paths to platform participation.

Publisher Partnership Models

For publishers, the royalty pool system offers a way to monetize backlist content that would otherwise generate no revenue. Publishers can test digital distribution without major upfront investment.

"Those publishers really buy into the fact that each of these different channels is complementary. The value of a book in print is different from the value of a book when you're accessing it on a phone."

The model treats digital and print as complementary rather than competitive, reducing publisher concerns about cannibalization.

Transparency and Trust

Quarterly reporting provides creators with detailed information about their content's performance, building trust in the platform's fairness and helping creators understand what resonates with users.

This transparency contrasts with traditional publishing where authors often have limited visibility into sales data and royalty calculations.

Revenue Pool Percentage

While Matthew doesn't specify the exact percentage of revenue allocated to the royalty pool, the model requires balancing creator compensation with platform operational costs and development investment.

Successful platforms typically allocate 50-70% of revenue to content creators, similar to music streaming services and ebook subscription platforms.

Scaling Creator Economics

As CKBK grows, the royalty pool grows proportionally, creating better income opportunities for creators without requiring platform margin compression.

This scalability makes the model sustainable for long-term growth while maintaining creator incentives for quality content production.

Impact on Content Quality

The usage-based royalty system incentivizes creators to produce content that users actually engage with rather than just content that attracts initial clicks.

This alignment between creator incentives and user satisfaction helps maintain platform quality while rewarding genuinely useful content.

Cross-Platform Revenue Impact

CKBK's digital distribution often drives sales of physical cookbooks, creating additional revenue streams for authors and publishers beyond the royalty pool.

"People often say, yeah, I tried out some recipes, really good, and that convinced me to buy it."

This complementary relationship strengthens creator relationships and demonstrates platform value beyond just subscription revenue sharing.

Future Evolution Opportunities

The royalty system could evolve to include additional revenue streams like sponsored content, premium features, or e-commerce integration while maintaining the core usage-based distribution philosophy.

These additions would expand the overall revenue pool available for creator compensation while providing platform diversification.

Lessons for Other Platforms

CKBK's royalty model demonstrates several principles that other content platforms can apply:

Usage-based distribution aligns incentives between creators and platform success. Transparency builds creator trust and long-term relationships. Diverse creator relationships provide content variety while serving different creator needs. Anti-gaming measures protect honest creators from manipulation.

Key Takeaways

• Usage-based royalties align creator and platform incentives: Creators earn more when users engage with their content, encouraging quality over quantity
• Quarterly transparency builds trust: Regular detailed reporting helps creators understand their income and content performance
• Diverse creator relationships serve different needs: Platforms can work with both large publishers and individual creators through the same system
• Anti-manipulation safeguards protect fairness: Systems must prevent artificial usage inflation while accurately measuring genuine engagement
• Digital and physical sales complement each other: Subscription platforms can drive additional creator revenue through traditional channels

Matthew's royalty approach shows how subscription platforms can create sustainable creator economics that benefit both content creators and platform users. The key is building fair, transparent systems that reward genuine user engagement.

Listen to the full conversation with Matthew Cockerill on the Levels Podcast to learn more about building creator-friendly revenue models for subscription content platforms.