The important part of the deal is not disclosed in the thread. One cannot deduce the right/wrong of these "setup" costs without knowing what goes on down the line.
Who sets the price of the book, and how much of that does Sony demand for their marketing/processing/payment?
If the author could price her book at say $10.00, and Sony takes 10%. That doesn't sound half bad to me -- ~$200 to have your book converted and marketed by Sony, minus 10%. You couldn't buy that kind of marketing for $200 + 10% if you wanted to put the book on your own site.
But if say Sony demanded a minimum of $5 per book from "independents" -- then it's not such a good thing.
Or maybe in a manner similar to what credit card processing companies do to merchants -- the deal is a certain percentage of sales, subject to a minimum dollar amount a month (i.e. a guarantee of sales in the eyes of Sony).
All in all, we don't know the whole story -- so it's foolish to draw conclusions.
Last edited by bostonte; 11-22-2006 at 07:05 PM.