[tubemonkey]

Nice piece in Forbes:

But for traditional publishers, e-books mean higher profits in a world where the trends in traditional publishing are all going in the wrong direction. For example, Digital Book World estimates that publishers make 10% profit margins on traditional books and 50% margins on e-books. And higher e-book sales may explain why Penguin and Simon and Schuster had flat 2011 revenues but higher profits.
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After all, Bezos is right that in theory there are only three players that are absolutely essential to keep the e-book industry going — authors, readers, and an electronic means of getting the author’s ideas into the readers’ minds. As more people buy e-book readers, and Amazon keeps prices on e-books below $10, the value proposition to consumers will be irresistible.