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Posts by THT

  I believe it is more complicated than this, and will doubt the DOJ until they lay AMZN's eBook division financials to really see. Amazon, as a company, rarely posts a profit, so skepticism about the eBook division's profitability should be warranted until they prove otherwise. As it stands today, we only have the word of the DOJ saying that Amazon's eBook business is profitable.   It's complicated as isn't Kindle hardware part of Amazon's eBook division? Kindle hardware...
  The publisher's problem is that hardcover books generate most of their revenues. These hardcover books are typically $15 to $25, with typical sell-in to the wholesaler/retailer at $12 to $15. The publisher's arrangement for ebooks were likely similar, they sold ebooks to Amazon at around $12, probably thinking that Amazon would sell them for one or two dollars cheaper than brick and mortar retailers selling hard covers, like they usually do for hard covers.   With...
  One more time. How do you know Amazon's eBook business was or is in the red? Then, how would you be able to tell in the future?   I don't think there's a problem whatsoever with Apple using the wholesale model for eBooks, and operating it at zero margin, just like Amazon is purported to do. The only problem is Apple's practice of always trying to make a profit, or at a minimum something just above break even like the iTunes store.   Was the DOJ lying about Amazon's...
  The DOJ declared that AMZN's ebook business is and was profitable. So, how are we supposed to tell the difference between then and the future?   Also, I said "zero margin" or "zero net profits". That doesn't mean a loss.
  Why not? That's the way their whole business is set up. They price to as close to zero margin or zero net profits as possible. Having someone else control prices is anathema to AMZN's modus operandi.
  The proposed remedy only bars agency contracts with the 5 major publishers. It doesn't bar wholesale contracts for ebooks. The DOJ remedy is telling Apple to use a wholesale model for eBooks and do it in such a way as to not raise ebooks price across the industry.   The problem for the publishers is that with the wholesale model, with Amazon employing their "zero margin" tactics, Apple can do the same. This nukes the publishers hardcover book sales, which is their...
Wow. The book publishers are a bunch of losers alright.
  Rhetorical question?   Predicting an Apple product will be in short supply for the first few weeks or months is not much of a prediction. You'd be 90% successful with the prediction by just saying the Apple XYZ product will be in short supply every single time.
  I'm asserting the DOJ doesn't understand the market forces involved, and are doing a disservice to consumers by choosing to go through this particular action.    1. Prices were not fixed. Prices were reset to a higher initial value yes, but they were subject to market forces and they came down. Didn't you see the graph by the DOJ? The one where there is a spike in the book prices? Sure, that is "price fixing" for all of about 1 month. The prices dropped immediately...
  Yes, the traditional big publishers are pretty much toast. They did it to themselves.   1. They saw the music industry get blindsided by digitization. It was inevitable for books to be in the same boat. This was over 10 years ago, and they had a long time to do something.   2. They knew Amazon was going to eat them alive, yet they became dependent on them, and didn't have the guts to break free. Amazon is notorious for getting the steepest discounts for wholesale book...
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