Quote:
Originally Posted by Fbone
After the Agency model kicked in. Kobo receives a minimum of 30% of every sale.
I would have thought the profit margin would be enough to keep from losing $10 million last quarter. That's $100,000 a day!
Kobo must have a lot of employees on their payroll. Or maintaining servers/IT personnel is more expensive than we realize.
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As I said, Kobo is running on a shoestring. It's not hard to spend $10 million more than your current revenues when you are seeding the market with inventory. Kobo expanded to a wide variety of new outlets throughout the fall and winter. It's not just about selling a $10 item and pocketing $3. Besides, Kobo has had extensive discount offers and, so far, I have yet to find a single title I've been interested in purchasing that did not qualify. And finally, lots of titles are less than $10 so they must also be selling a good deal of titles. Good on them!