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Originally Posted by Cinisajoy
Proof of how Amazon is using profits please.
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Not sure how I can prove that Amazon use profits of ebooks to lower the prices of hardcovers and paperbacks sold on Amazon.
Fact is that hardcovers and paperbacks on Amazon is now cheaper compare to before. That discount must be coming from somewhere....
Amazon is known for using profits from one segment to help another segment. AWS is a good example.
http://authorearnings.com/report/feb...rnings-report/
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According to both our data and Amazon’s own public statements, despite the Big Five’s return to agency ebook pricing, Amazon’s overall US ebook sales have continued to grow throughout 2015 in both unit terms and dollar terms. On the other hand, the Big Five’s share of those ebook sales has plunged precipitously in both dollars terms, and even more precipitously in unit terms.
That particular outcome was easily predicted — and probably inevitable. Perhaps the Big Five viewed it as a strategic sacrifice.
But at the same time, Amazon’s online print sales — driven by steeply discounted hardcovers and paperbacks, which in many cases were priced even lower than the ebook editions — ALSO went up. Significantly. In fact, our data points toward Amazon seeing even greater growth in their 2015 print sales than in their 2015 ebook sales.
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