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Originally Posted by pwalker8
I would imagine that as the e-book market strengthens, Amazon and other e-book stores will be in a position to start pushing back on the publishers putting prices more in line with what the consumers are willing to pay, kind of like what happened with music industry and Apple. It may take a couple of years, but Amazon has the money to stay with it.
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It's not clear how much influence Amazon will have. Publishers set wholesale prices they charge to distributors and large retailers. Amazon's leverage will be refusing to stock ebooks if they don't get the price they want. The question is how big an impact that will have on the publisher. Unless the market gets a
lot larger and more robust, I suspect most publishers will say "Fine, don't stock the ebook. We aren't lowering our wholesale price."
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I also think that Amazon is a lot more interested in the sale of e-books than they are in the sale of kindles. I would not be terribly surprised to see the kindle get spun off as a separate company at some point.
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I concur on this. Amazon is the 800 lb gorilla of retailing. eBooks are a perfect fit them, as they already have the order processing and distribution infrastructure in place. But with ebooks, there is no physical inventory to warehouse or ship, so the corresponding costs aren't there.
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Dennis