Weird Economics of Ebooks?

DocHolliday2006 · 11-17-2010, 10:09 PM

So you can buy a paperback, which requires printing, shipping, storing, and shelf space, for $6-8, but an electronic ebook, which requires little investment on the part of the company, doesn't seem to drop below $9.99?

Just curious to know what you guys think of the weird economics of ebooks. Will things change? Why are publishing companies being so stubborn?

wannabee · 11-17-2010, 10:19 PM

They don't get a choice any more

See here

Worldwalker · 11-18-2010, 01:14 AM

They're being so stubborn because they've formed a combination in restraint of trade to collude on prices, and are getting away with it. Corporations own the politicians and write the laws, so it's unlikely to change any time soon, unless the market changes drastically -- which would mean a whole lot of ebooks from non-cabal publishers (Baen, O'Reilly, the indies, etc.) selling, and the cabal publishers' books sitting unread. And even then, they might not change anything -- just treat it as proof that ebooks don't sell.

tubemonkey · 11-18-2010, 09:38 AM

Publishers win because the public refuses to make the hard choice - boycott.

I have no sympathy for those who complain about the prices and buy anyway.

leebase · 11-18-2010, 09:45 AM

Why do Coke and Pepsi cost more than Faygo?

Lee

tubemonkey · 11-18-2010, 09:50 AM

Quote:

Originally Posted by leebase

Why do Coke and Pepsi cost more than Faygo?

Lee

Because people love paying high prices.

PS: I never heard of Faygo.

leebase · 11-18-2010, 10:34 AM

Quote:

Originally Posted by tubemonkey

Because people love paying high prices.

PS: I never heard of Faygo.

Cheap "off brand" sodas. Used to love their strawberry flavor.

Lee

Shaggy · 11-18-2010, 10:44 AM

Quote:

Originally Posted by DocHolliday2006

Why are publishing companies being so stubborn?

Multiple choice...

A) Stupidity.
B) Greed.
C) They don't really want ebooks to succeed.
D) All of the above.

J. Strnad · 11-18-2010, 11:05 AM

Quote:

Originally Posted by tubemonkey

Publishers win because the public refuses to make the hard choice - boycott.

I have no sympathy for those who complain about the prices and buy anyway.

Yep.

Actually, the downward pressure is most likely to come from widespread piracy. Publishers will have to find that sweet price point that maximizes their profits while being just low enough to motivate people to buy rather than steal.

jbcohen · 11-18-2010, 11:32 AM

Personally I have been upset by the rise in book prices over the past few years and I have set a hard price limit to the books that I will even think of buying, ebook or printed makes little difference. My rules are very cut and dry makes little difference who you are or think you are:

Will not pay more that $8 with very few exceptions (Robert Jordan is currntly the only one).

Will not ever buy an ebook that exceeds the cost of the printed book.

mr ploppy · 11-18-2010, 12:51 PM

Quote:

Originally Posted by J. Strnad

Yep.

Actually, the downward pressure is most likely to come from widespread piracy. Publishers will have to find that sweet price point that maximizes their profits while being just low enough to motivate people to buy rather than steal.

I think they are more likely to ride on the coat tails of the other entertainment companies who can afford to buy politicians and get new laws created to prop them up.

Any push towards lower prices is going to come from reasonably well known authors self publishing thier backlets and passing on the savings to end customers. While writers feel they need some big company leeching from their talents it will never happen.

Krystian Galaj · 11-18-2010, 01:17 PM

If you're interested in economic side of ebooks, I can recommend a series of blog posts here: http://www.techdirt.com/articles/20070503/012939.shtml

The linked one is the last in the series, scroll down to see links to previous ones in chronological order.

Shaggy · 11-18-2010, 01:46 PM

Quote:

Originally Posted by mr ploppy

I think they are more likely to ride on the coat tails of the other entertainment companies who can afford to buy politicians and get new laws created to prop them up.

Indeed. Charge ridiculous prices and then blame "piracy" when your product doesn't sell. Then go to congress, donate a few hundred thousand towards their campaigns, and get laws written that let you sue a soccer mom for 2 million dollars. The politicians and corporations get rich, everybody wins!

Fbone · 11-18-2010, 02:46 PM

I don't expect any price decreases with the Nook Color being released.

elemenoP · 11-18-2010, 03:20 PM

Did music piracy decrease when Apple introduced 99-cent song downloads? Any stats or articles about that?

11-17-2010, 10:09 PM	#1
DocHolliday2006 Junior Member Posts: 9 Karma: 10 Join Date: Nov 2010 Device: None	Weird Economics of Ebooks? So you can buy a paperback, which requires printing, shipping, storing, and shelf space, for $6-8, but an electronic ebook, which requires little investment on the part of the company, doesn't seem to drop below $9.99? Just curious to know what you guys think of the weird economics of ebooks. Will things change? Why are publishing companies being so stubborn?

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11-17-2010, 10:19 PM	#2
wannabee Media Bloke Posts: 2,382 Karma: 113956855 Join Date: Sep 2010 Location: NSW - Australia Device: iOS	They don't get a choice any more See here

11-18-2010, 01:14 AM	#3
Worldwalker Curmudgeon Posts: 3,085 Karma: 722357 Join Date: Feb 2010 Device: PRS-505	They're being so stubborn because they've formed a combination in restraint of trade to collude on prices, and are getting away with it. Corporations own the politicians and write the laws, so it's unlikely to change any time soon, unless the market changes drastically -- which would mean a whole lot of ebooks from non-cabal publishers (Baen, O'Reilly, the indies, etc.) selling, and the cabal publishers' books sitting unread. And even then, they might not change anything -- just treat it as proof that ebooks don't sell.

11-18-2010, 09:38 AM	#4
tubemonkey monkey on the fringe Posts: 45,762 Karma: 158733736 Join Date: May 2010 Location: Seattle Metro Device: Moto E6, Echo Show	Publishers win because the public refuses to make the hard choice - boycott. I have no sympathy for those who complain about the prices and buy anyway.

11-18-2010, 09:45 AM	#5
leebase Karma Kameleon Posts: 2,960 Karma: 26738313 Join Date: Aug 2009 Device: iPad Mini, iPhone X, Kindle Fire Tab HD 8, Walmart Onn	Why do Coke and Pepsi cost more than Faygo? Lee

11-18-2010, 11:32 AM	#10
jbcohen Wizard Posts: 3,032 Karma: 11196738 Join Date: Oct 2010 Location: Where am I? Device: Kindle Paperwhite Signature edition and a Samsung S24 Ultra	Personally I have been upset by the rise in book prices over the past few years and I have set a hard price limit to the books that I will even think of buying, ebook or printed makes little difference. My rules are very cut and dry makes little difference who you are or think you are: Will not pay more that $8 with very few exceptions (Robert Jordan is currntly the only one). Will not ever buy an ebook that exceeds the cost of the printed book.

11-18-2010, 01:17 PM	#12
Krystian Galaj Guru Posts: 820 Karma: 11012 Join Date: Nov 2007 Location: Warsaw, Poland Device: Bookeen Cybook	If you're interested in economic side of ebooks, I can recommend a series of blog posts here: http://www.techdirt.com/articles/20070503/012939.shtml The linked one is the last in the series, scroll down to see links to previous ones in chronological order.

11-18-2010, 02:46 PM	#14
Fbone Is that a sandwich? Posts: 8,288 Karma: 101697116 Join Date: Jun 2010 Device: Nook Glowlight Plus	I don't expect any price decreases with the Nook Color being released.

11-18-2010, 03:20 PM	#15
elemenoP Wizard Posts: 1,717 Karma: 3790058 Join Date: Oct 2010 Location: NYC Device: Kindle Paperwhite, Sony 650	Did music piracy decrease when Apple introduced 99-cent song downloads? Any stats or articles about that?

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