Quote:
Originally Posted by ApK
I think we are indeed both lost on this particular tanget.
And I don't think I disagree with anything you said just now (I might, but I'm not fully awake and nothing jumped out at me).
All I meant by my post to pwalker was that Hachette can't sell ebooks to amazon at a loss, which seems to be what was claimed.
They can only impact the number of sales it takes before they recoup their investment and how much profit they make after.
Hachette can certainly wind up in non-optimal deal with Amazon.
We might disagree on which side we'd bet on being right, I think that's all.
We're all here making predictions of mostly-secret negotiations, based on past events, right?
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What I said was that Amazon was selling ebooks at a loss. Amazon had to pay Hachette a percentage of the list price for each Hachette ebook that Amazon sold. If Amazon sold that ebook for less than that, then Amazon sold it at a loss. Very straight forward and simple. As for ebooks not costing Hachette anything, then I would suggest that you do not understand how one formats an ebook. I would also suggest that you don't understand modern accounting practices. One simply can't assign all the expenses to hardbacks and pretend that everything else doesn't cost anything to produce.