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Originally Posted by zelda_pinwheel
(should i mention how much money they would save, if they dropped DRM and its associated costs ?  not to mention that they would probably thereby increase sales, effectively getting two hits with the same stone...)
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Yes, I think this is worth mentioning, as I think it's one of the "expenses" they're talking about.
It would seem that Baen has a more modern file management system than other publishers, but I think that would be a one-time cost to convert. It wouldn't be trivial -- changing business processes never are. But I think any publisher that doesn't get their file management under control so they can reformat books and publish electronic editions at will is going to be out of business in 10 years.