e-Books and Profitability

Barcey · 06-25-2013, 12:17 PM

Teleread (Chris Meadows) had a link to this AARdvark blog with a slide from a recent HarperCollins Investment meeting.

http://aardvarknow.us/2013/06/04/e-b...always-denied/

The slide shows that publisher profitability is up with agency, author royalties are down and customer prices are up. Something we already knew but I found it interesting to see a publisher admit it with numbers.

I threw the numbers into a spreadsheet to expand the comparison in case anyone else is interested.

Added a column to show what the publishers claim pre-agency with Amazon losing money on each ebook.
Added a column to show a wholesale model if the BPH just dropped the artifical list price.
Added a column to show the likely fear of the BPH where Amazon tries to squeeze them for 30% and the authors ask for the same amount they were getting on hardcover sales

06-25-2013, 12:17 PM	#1
Barcey Wizard Posts: 1,531 Karma: 8059866 Join Date: Oct 2007 Location: Canada Device: Kobo H2O / Aura HD / Glo / iPad3	e-Books and Profitability Teleread (Chris Meadows) had a link to this AARdvark blog with a slide from a recent HarperCollins Investment meeting. http://aardvarknow.us/2013/06/04/e-b...always-denied/ The slide shows that publisher profitability is up with agency, author royalties are down and customer prices are up. Something we already knew but I found it interesting to see a publisher admit it with numbers. I threw the numbers into a spreadsheet to expand the comparison in case anyone else is interested. Added a column to show what the publishers claim pre-agency with Amazon losing money on each ebook. Added a column to show a wholesale model if the BPH just dropped the artifical list price. Added a column to show the likely fear of the BPH where Amazon tries to squeeze them for 30% and the authors ask for the same amount they were getting on hardcover sales Attached Thumbnails

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