Originally Posted by Nate the great
So Apple won't accept the ebooks directly? Huh.
I'd guess that the other companies still think of the cost as being the same as when it was done by hand. That was expensive when compared to doing it by computer.
No, Apple is working through a group of distributors (aggregators in their lingo). It's a smart way for them to begin this whole iBookstore project. The bottleneck is the business model of the distributors as mentioned above. And it's true, they have no clue how to utilize computers. They've made a big investment, but are still doing old fashioned business.
Here's an easy scenario to imagine - it's all electronic.
• An order comes in for an ebook.
• Electronic payment is made from buyers bank account to distributors account.
• An ebook is downloaded to buyer.
• Distributor's files are updated.
• Author's file is updated. Author is credited with a sale.
• Funds are transfered to Author's account.
• End of transaction.
Say, 30 seconds to be generous. The distributor gets 10%. A good half a minute's work. - Fabe
A follow up - To be fair, these distributors are in between the sales agent - Apple - ad the author. This may take a minute and a half.