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Posts by THT

  Definitely the latter. ebook prices were going to fall to less then $5, if not lower. And it was going to happen sooner than later.   1. People don't read books anymore. Yes, Steve Jobs was right. The competition for our time is intense. What would I rather do during the 60 minutes per day of free time I have? Watch TV and the 500 channels available? Read and participate in an Internet forum? (I do this too much obviously). Read websites and blogs? Play a game? (Kingdom...
  I think the DOJ is nuts here (the equivalent of Javert from Les Miserables), but the collusion is fairly easy to understand.   In the wholesale model (what most retailers use), a publisher would sell books to a retailer for say $15 (wholesale price). The retailer is than free to sell it to end consumers at the MSRP, like $25, or $20, or loss lead for $10. The price competition arises because a publisher would sell their books to multiple retailers: like Barnes & Nobles,...
  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.
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