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Old 02-04-2010, 04:44 PM   #71
tompe
Grand Sorcerer
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Posts: 7,452
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Join Date: Oct 2007
Location: Linköpng, Sweden
Device: Kindle Voyage, Nexus 5, Kindle PW
Quote:
Originally Posted by Lemurion View Post
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.
Exactly. I do not understand why people here think Amazon is the good guy here.
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