|
<i>Remember, the book itself pays royalties to the publisher, not Sony. </i>
Yes, this is true, but as an author you know that it works this way. With a paper book, the publisher sells the book to the bookstore through a distributor, such as Ingrams or Baker & Taylor. The book is sold from P to B at a 40% off discount (generally). The author is paid a full royalty on any book sold and NOT RETURNED.
For any book that is sold to the bookstore and the bookstore cannot sell, it can be returned and the bookstore is given a credit toward future "purchases."
The bookstore sells the book to the consumer.
Ebooks work essentially the same way. Publishers sell content through a distributor like Lightning Source or some other jobber at the same rate - generally 40% (as far as I know). The retailer, fictionwise, sony, etc, then adds a markup. Obviously Sony does a markup of 20% (because it sells the books at 20% off, assuming the 40% off discount it receives).
<i>I wouldn't expect Sony to charge anything close to the markup for a book, just to get their e-book format (with other free formats available, such a move would be ridiculous, as the bookstore would simply push the other formats and make more profit).</i>
This is essentially my point. Why would Sony resell its ebooks to Borders when it can sell directly to the consumer? If Borders resells Sony books - they would have to do so at the same discount. Therefore, either Sony or Borders is going to have a very slim profit margin - if any at all.
|