Quote:
Originally Posted by SharkLaser
Why would you base an entire business on hoping Apple continues to allow you to profit from their platform for free?  That just seems a bit silly. It was hardly unexpected that Apple would want a cut. |
They had a seriously flawed business plan. What are they offering? A reader app. Do they make money selling the reader app? No, they offer it free hoping to make money selling ebooks.
Well, here they are ENABLED by Apple and the move to agency pricing. They didn't have 50% margin to work with. Who would buy ebooks from them when Amazon was subsidizing the price of all the most desired books to below wholesale cost? Agency pricing ENABLES the small book seller to exist in light of the existence of Amazon and B&N.
BUT -- they don't own the platform. Their business plan required them to compete with Apple on Apple's platform selling the same products as Apple is desiring to do. That would be like trying to setup up a book-table in the middle of a Barnes and Noble. Or trying to sell new books through Amazon cheaper than Amazon sells new books via Amazon. Just not a great business strategy.
What are they offering to the market? eBooks? They have nothing over Apple, Amazon, B&N, Kobo or anybody else to say "choose to buy your ebooks through me".
A nifty ebook app? Well, sell THAT. Sell the d@mn app if it's good enough for people to pay verses the free offerings available.
This company is the victim of their own poor business sense.
Lee