Quote:
Originally Posted by Lemurion
The problem here is not that content producers think that they are immune to the laws of economics - it's that they know that they are NOT immune to the laws of economics. Amazon has been holding bestseller prices artificially low in order to increase Kindle adoption and grab market share.
As ebook market share increases, Amazon will reach the point where they can no longer sell them at a loss and so they are playing hardball so that when that time comes, publishers will have to reduce wholesale prices rather than Amazon having to increase retail prices. Publishing runs on a narrow margin and having to take a 50% cut in revenue from the ebook versions of their most profitable books would kill them - especially as ebook sales start to rise.
This is simple self-defense.
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Boo friggin Hoo.
As technology improves, stuff gets cheaper for the same quality item. This happens because of *gasp* competition in the marketplace and the need for innovation.
You cannot take the cost of producing a widget today, and say those costs will hold constant tomorrow. They won't.
Instead of clinging to an outdated model, Macmillian should be investing in infrastructure to reduce production costs. That would enable them to undercut their competitors, and yet make a larger profit. Hey, competition at work instead of bellyaching about how they can't adapt to the new-fangled whatchamacallit dagnabbit KIDS GET OFF MY LAWN!