Quote:
Originally Posted by dirtylc
Capitalism Free market isn't that what got us into the worst recession since the great depression. huh? I did the numbers and if a person were to start an independent company with the same price point around $4 they can make a healthy profit.
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Whoa there dirtylc! Capitalism didn't get us here, government regulation did. And we'll stay here as long as we keep digging the hole (more regulation, bigger gov't).
Anyway, back on topic. Dirtylc is right in the sense that the publishers aren't realizing the opportunity and are instead trying to hold on to an antiquated business model. Let's look at the fact that production costs for ebooks are significantly lower than DTB. Following that it would seem reasonable that ebooks would be cheaper, but we know they're not.
Now publishers know (and rightly so) that buyers of the DTB's would have no qualms buying an ebook. What they aren't considering are NEW readers, those who would purchase an ebook if the price was lower. For many here on this board, paying $15 for an ebook is no big deal because they would pay that anyway for a hard copy. But for many millions more, they are much more sensitive to price.
We go over the Apple analogy ad nauseum, but it is seems appropriate. I never bought music -- no tapes, cd's, ever. Once i got turned on to Itunes and Ipods, I buy music all the time. But only because I am spending 0.99 cents for a song (of course, now multiplied about a million times). So for me, Apple was able to generate a revenue stream that record companies otherwise wouldn't have had.