Thread: Stephen Covey ditches Simon & Schuster, gives exclusive rights to Amazon
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Old 12-20-2009, 11:37 AM   #90
DMcCunney
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Quote:
Originally Posted by kennyc View Post
To the $99 price point, look at mobile phones. When a retailer like Amazon or B&N or Sony combine the ebook reader with a subscription service, the price for the ebook reader might easily drop that low.
Mobile phones are that cheap because of telco subsidies to lock users into contracts. Just about everybody has a cell phone now and needs a contract. Prices for an unlocked phone not tethered to a specific provider by a multi-year contract are rather higher than the normal prices you see quoted.

What sort of subscription plan might B&N/Amazon/Sony offer, and would the revenues cover the needed subsidies?

I think the basic question is "Is the market big enough to make something like this feasible?" At the moment, I don't think it is. It may be down the road, but I'm not really optimistic. Mind you, I'd be happy to be wrong in my pessimism.
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