Quote:
Originally Posted by rkw
thanks Harry. That was kind of the direction I was thinking, the publisher could save some cash and increase profits without lifting a finger by getting rid of DRM.
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Overly simplistic. They could increase profit per book sold, but the question is whether they would increase profit overall.
They have very highly paid financial analysts and executives who believe that the extra 22 cents is compensated for by the losses they avoid by blocking casual sharing. We can argue our opinions and anecdotal evidence, but they are banking their business on it, so I presume their research is, um, at least as thorough as those who post about it here.
Clearly they see the money spent on DRM to be an investment to increase profits. Just like paying a customer service person has the intent of hopefully getting more money out of happy customers. Eliminating that expense would not necessarily result in more profit.
That being said, analysts have been wrong, and business models have been changed as research results change, and people do take chances and try new things sometimes.