James Frey’s Fiction Factory
nymag.com
nymag.com
As others have mentioned, the work often provides little creative value, but builds huge cult followings and massive profits for the artists. Koons' art regularly sells for $10-25mm and one of Hirst's auctions generated $198mm in 2008. Likewise, musical artists who employ ghostwriters often make it to the top of the charts, and authors like Frey can reap millions from their hired "co-writers."
Using "assistants" has been around for many years, and it's not going away anytime soon - there's still money to be made. One of the best examples of the absurdity occurring in the creative world is Banksy's Mr. Brainwash character in 'Exit Through the Gift Shop.' Highly recommended to all.
"In exchange for delivering a finished book within a set number of months, the writer would receive $250 (some contracts allowed for another $250 upon completion), along with a percentage of all revenue generated by the project"
And of course, the authors are depending upon Frey to be honest with his accounting.
There is a market for this teen/young adult genre-crossing stuff, and it will _certainly_ get saturated at some point. Whether that some point is when Frey starts his Warhol/Kostabi factory or not is the key question.