Quote:
Originally Posted by pwalker8
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.
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No one believes it costs nothing to produce an ebook. Even an ebook of a backlist book with no editing (just copyediting and formating), advances, legal, ect costs. But it is an upfront fixed cost. There is no additional cost/ebook after the first one is uploaded to the retailer. Unlike paper books where you need additional printing runs, shipping, warehousing and occasionally even completely new editions to be produced. The more copies that are sold the bigger the difference in costs between the two formats. One keeps growing the other stays the same.