Quote:
Originally Posted by Cinisajoy
Oh and I don't think less than 5% is that much of a loss.
That statement depends on the number of zeroes before the decimal point.
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Remember, that is off the gross.
From that $5B or so you have to subtract salaries, operating costs, royalties, overhead, and all their other expenses (a lot of which are fixed year to year). And then remember how they got to that point: 10% drop in ebooks (50% net margin) and a sight growth in pbooks (20% net margin).
On a year to year basis, the BPHs get to pocket maybe 9-10% of their gross so that 10% drop in ebooks could conceivably cut their net profits in half. Their bosses across the pond are not going to be writing that off as just a glitch.