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Originally Posted by AshW
I don't see why this is an issue for publishers though. Assuming someone who chooses not to buy a reader continues to buy print books (and why wouldn't they?) they still make money. The fact that a reader wasn't purchased doesn't effect them so much.
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It might affect them more than you think. Book sales are down, people are worried. I think most reasonable publishers would rather have an ebook sale than lose a treebook sale because budgets are tight. I just don't think most of them are thinking clearly yet about how to promote ebooks profitably.
Baen has figured out that a lot of sales at a low price are better than a few sales at a high price. A senior editor there told me recently that they did quite well with ebook sales on some Sharon Lee/Steve Miller titles. The only regret was that they didn't buy the treebook rights, too, but let them go to another house.