Quote:
Originally Posted by Kali Yuga
No, it means that the new format is not taking away business from competitors, it's taking away business from the existing sales structure.
It's a commonly used term, and she is using it properly.
Your wrench example does not match the paper/ebook example. Here's a better one.
Honeywell puts out a series of high-quality wrenches for $1000, and makes $100 in profit off of each set. A competitor puts out a set of wrenches that are not quite as good for $600, and Honeywell's wrench sales plummet. Honeywell decides to compete, and puts out a set of lower-quality wrenches for $500, and makes $50 in profit off of each set. The lower-quality wrenches sell very well, but the higher-end sales continue to fall.
In that scenario, Honeywell chose to sacrifice the higher-end higher-margin sales to its own lower-cost lower-margin sales, rather than let the competition take its business away. Any time a customer chooses a Honeywell lower-end wrench set over the higher-end wrench set, that is a "cannibalized" sale.
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How is an ebook by an author somehow "lower quality" than the paperback or hardcover version of the same book?
Exactly the same words, in a more convenient package. Seems like the same quality to me.