Quote:
Originally Posted by Ninjalawyer
You're right. Amazon states that its ebook division has been profitable from the start. If true, it suggests that they weren't doing something unsustainable. Interestingly, it's worth noting that the DOJ was asked to investigate Amazon in 2009 and nothing came of it.
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Which makes my statement a neglected fact *not* opinion. Hmph!
All the available (albeit limited) data is that Amazon makes a net profit off ebooks. And the fed settlement *forces* them to do it on a publisher by publisher basis instead of storewide so the whining is just empty noise anyway.
My statement stands: Amazon sells some books below-cost but they don't sell *all* books below cost and they make their ebook profits in the aggregate, not the specific.
No magic, folks: it is no different than pricing the first volume of a trilogy at $0.99 and the other two at $2.99. Not everybody that buys the first volume buys the other two but enough do that the net take is still higher than pricing all three at $2.99.