Quote:
|
The Kindle's economics are still lousy for Amazon: The company loses money on new releases and makes only a modest amount on older titles, thus losing an estimated $1 per Kindle book.
|
Anyone who actually believes that tripe, I have a bridge I want to sell you...how is it that Amazon is losing money again? Considering all the other online ebook stores out there selling for pretty much the same price when averaged out, some a bit more some a bit less...I am will to bet there are very few titles which vary in price...as in Amazon is paying the same royalty for each book in a publishers catalog, save a few best selling authors as well as, obviously, new releases.
I also promise you that it is those with a vested interest in manipulating ebook prices to preserve the same-old-same-old pricing model only with the kicker of people not being able, currently, to resell an ebook. If they want that model then when we buy a book, we have the right to sell that one "copy" (call it a license if you prefer, but ebooks are not software). If that is the case then FINE people should be able to resell and the publishers can keep the same over the top pricing for something that takes essentially no space, costs next to nothing to deliver and never will go out of print...it will just sit there in a database waiting for someone to buy a copy....for the next 70yrs...
Publishers never bring up that side of the equations, ebooks will not harm publishers, they will actually increase their business because simply due to attrition used book stores will become a thing of the past, save for those which deal in rare and hard to find editions. Thus, book buyers will have to buy at "retail" prices. And for every book a buyer who previously bought only used, now represents a whole new sale for the publisher and retailer.
In fact publishers would begin moving to ebooks exclusively to press their advantage now.
And to this end, not a chance Amazon is losing money on a ebook sale...just like other industries which cry poverty, any corporation worth its salt can cook the books to make it appear they have less profit when the need arises. Amazon just is standing up the the MAP (minimum advertised pricing) agreements crap so many mfg's are trying to jam down our throats these days by forcing retailers to stop advertising lower prices to increase sales volume
(an aside: yes this is a real thing. Its roots are an attempt to work around consumer protection laws about price fixing. In fact the state of Maryland recently passed a law about such MAP agreements which affects any online seller who offers product to residents of the state...other states are going to follow suit in short order as well, the laws are already in the process)...so in return the publishers are likely spreading disinformation to try and anger Amazon stockholders.
There is no such thing as an impartial journalist anymore either, so I never believe squat I read in papers, magazines or whatever...just, as they say, follow the money and look to see who benefits from the such tactics.