MobileRead Forums - View Single Post - Simon & Schuster is delaying ebooks by four months

markbot · 12-09-2009, 01:15 PM

If I were advising the publishers I would recommend that they get in front of ebooks before they lose total control...as what happened in music. They should consider backing a single format that has DRM and releasing it at the same time as the hardcover. The reason is that if they allow the device makers to maintain their own formats....then the sony's and amazons will gain a disproportionate share of the value capture (profits) since it increases the device maker's and retailer's negotiating position.

They should release the ebook format right away because it reduces incentive to pirate, maximizes on marketing costs, and reduces the size of the secondary market.

In general, when a firm tries to increase value capture at the expense of value creation it wins in the short run but loses in the long run. This is a fairly consistent phenomenon in business.

On the pro side for not releasing the ebook format right away is that it does the job of "price discriminating"....people with a high value on the book purchases right away and pays high price. people with a lower value on the book pay a lower price by delaying purchase. So, this makes sense.....but I think the cons are stronger.

12-09-2009, 01:15 PM	#24
markbot Guru Posts: 612 Karma: 7511929 Join Date: Apr 2007 Location: New York, NY Device: Amazon Kindle Paperwhite 2	If I were advising the publishers I would recommend that they get in front of ebooks before they lose total control...as what happened in music. They should consider backing a single format that has DRM and releasing it at the same time as the hardcover. The reason is that if they allow the device makers to maintain their own formats....then the sony's and amazons will gain a disproportionate share of the value capture (profits) since it increases the device maker's and retailer's negotiating position. They should release the ebook format right away because it reduces incentive to pirate, maximizes on marketing costs, and reduces the size of the secondary market. In general, when a firm tries to increase value capture at the expense of value creation it wins in the short run but loses in the long run. This is a fairly consistent phenomenon in business. On the pro side for not releasing the ebook format right away is that it does the job of "price discriminating"....people with a high value on the book purchases right away and pays high price. people with a lower value on the book pay a lower price by delaying purchase. So, this makes sense.....but I think the cons are stronger. Last edited by markbot; 12-09-2009 at 01:19 PM.