Publishers are worried Amazon (AMZN) might try to squeeze them on Kindle profits. Right now,...


Publishers are worried Amazon (AMZN) might try to squeeze them on Kindle profits. Right now, publishers get around $2.15 per digital book vs. $0.26 for a print copy, but Amazon's market dominance gives it plenty of bargaining power.

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Comments (2)
  • PassingBy55
    , contributor
    Comments (58) | Send Message
     
    As they should....a digital copy costs the publisher next to nothing compared to a physical book, they're getting 10x the margin on them. Amazon is the one hawking a $300 piece of plastic and should be compensated for the risk they've undertaken.
    9 Jul 2009, 12:56 PM Reply Like
  • guinnessman
    , contributor
    Comments (4) | Send Message
     
    Amazon and the publishers don't understand the true risk of their offering is to the consumer but they unlikely to see any finacial reward for converting their library to digital. iSuppli estimates the cost to build the device at $185.49 so the only real risk is for amazon is a large marketing budget for a product that really does not save the consumer money. In fact, I wonder how many books does a person need to buy on the kindle to really break even.

     

    On Jul 09 12:56 PM PassingBy55 wrote:

     

    > As they should....a digital copy costs the publisher next to nothing
    > compared to a physical book, they're getting 10x the margin on them.
    > Amazon is the one hawking a $300 piece of plastic and should be compensated
    > for the risk they've undertaken.
    9 Jul 2009, 01:15 PM Reply Like
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