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Baen's Universe was a webzine with a mix of short stories and serials by both new and established authors. It's not lost money, but it's not long term viable either because of the specifics of how it was launched, its likely Baen will launch another webzine within a few years.
I'd point out that the indie pen and paper RPG industry is very much work-for-hire, and many of the "companies" are one-man shops. And yet look at DriveThruRPG, which carries a wide variety of brands. One of the criteria involves a community.
Only one thing to me is really clear - the landgrab by publishers to ebook editions of older-contract books needs to be slapped down, and hard.
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