Quote:
Originally Posted by Connallmac
Welcome to the real world pal. I'd like to get paid more too, but there is a concept called supply and demand. When you raise the price of something 50% oddly enough the demand goes down. Imagine what that will mean for suppliers long term financial health? Do you think McDonald's would sell as many Big Macs if they raised the price by 50% over night? No increase in size, quality or availability, just an increase in price. Why do content producers think that they are immune from the basic rules of economics???
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The problem here is not that content producers think that they are immune to the laws of economics - it's that they know that they are NOT immune to the laws of economics. Amazon has been holding bestseller prices artificially low in order to increase Kindle adoption and grab market share.
As ebook market share increases, Amazon will reach the point where they can no longer sell them at a loss and so they are playing hardball so that when that time comes, publishers will have to reduce wholesale prices rather than Amazon having to increase retail prices. Publishing runs on a narrow margin and having to take a 50% cut in revenue from the ebook versions of their most profitable books would kill them - especially as ebook sales start to rise.
This is simple self-defense.