Quote:
Originally Posted by Top100EbooksRank
How can Barnes and Noble lose money on selling ebook when
1) it is forbidden to sell a publisher’s “entire catalogue at a sustained loss.” (SEE BELOW)
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Amazon cannot now, for example, make every single HarperCollins title it carries free (even if it were inclined to do so). When it comes time for Simon & Schuster, HarperCollins and Hachette to negotiate their new contracts, the settlement allows them to “negotiate a commitment from an e-book retailer that a retailer’s aggregate expenditure on discounts and promotions of the Settling Defendant’s e-books will not exceed the retailer’s aggregate commission under an agency agreement in which the publisher sets the e-book price and the retailer is compensated through a commission.”
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This only requires the retailer to make a gross profit.
That is, there must be some money left once they have handed over the 70% (or whatever figures is negotiated) to the publisher. They cannot discount more than their 30% share.
It doesn't seem to require them to make a
net profit.
That it, it does not seem to require that the money left over is enough to cover the cost of sales.
It which case it would allow a retailer to run at a loss.