Quote:
Originally Posted by Kumabjorn
This pressure will continue downwards towards a new equilibrium. That price point will likely be so low that it discourages new agents (authors in this case) to enter the market, hence no new books until the lack of supply will begin to put an upward pressure on prices.
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Incredibly unlikely. No one reasonable is asking for ebook prices to plummet - just for publishers to stop pricing them comparable to physical books and keeping the difference in costs of manufacturing (everything after conversion to a format the printer can use; replaced by conversion to epub/mobi/whatever), transportation (reduced to like 1/10th of a cent per megabyte, if that, per transmission to the storefront that will be selling it - probably once per edition per storefront, no matter how many copies sell), and warehousing as profit. Remove those three factors (physical manufacture, transportation, storage) and thus $2-3 off of each ebook (compared to the mass-market paperback price - screw hardcovers and trade paperbacks, which are both ripoffs anyways, IMHO).
Authors and publishers would both get the same amount as they do for the physical product.