Quote:
Originally Posted by wallcraft
Amazon is most likely going to make significantly more profit from ebooks than before. Almost all the extra money that Kindle customers will be paying for ebooks will be going to directly to Amazon's bottom line.
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Amazon's plan was for publishers to give them bigger discounts on ebook sales so that they made a profit at the $9.99 level. Amazon has been pushing the big publishers for larger and larger discounts on a continuing basis and may well have been pushing for the majors to join in the 70/30 split plan at $9.99, a move that would involved them seeing a steep decline in revenue. Amazon may have started out subsidising Kindlebooks, but I very much doubt they kept up that scheme for very long. They finally ran into a publisher with real balls.
The last time a publisher tried to stand up to them (Hachette in 2008), Amazon ended up winning. The fact that Amazon has folded so soon in this affair makes the whole thing look very much like a stunt, and a rather immature one at that.