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Publishers justify $13-$15 e-book prices for Apple iPad - Page 2

post #41 of 210
Quote:
Originally Posted by dreyfus2 View Post

That's why they only intend to charge $12-$14 for the ebook, not $26. Where is the BS here?

Okay, so using the same numbers, and taking into account the criticism below that it's "revenue" and not profit... The publishers are making approximately twice the revenue for eBooks as opposed to paper.

I've worked in the publishing industry before, for over ten years and I'm being really generous here in saying that they are only making double the profit actually. Most of the publishing industry is an inefficient scam-fest, much like the music industry.

The reality is quite different from even these carefully prepared numbers that they "leaked" to the media today. I can guarantee that this is part of a carefully planned PR push, not "straight-shooting" from the publishers as many seem to automatically assume here. For instance the reality of the difference between the "revenue" and the "profit" is rather spurious given that the eBooks are at this point an afterthought and all the ancillary costs are already budgeted out in the paper editions cost. Not to mention the fact that this breakdown is actually talking about costs and is therefore really "profit" and not revenue at all.
post #42 of 210
Quote:
Originally Posted by Gigawire View Post

In an e-world, what is the point of a publisher?

If you cant figure that one out, it will be difficult to explain.
post #43 of 210
Personally, I'd like the ebook edition included with my hardback just like there is a digital download available in some Blue-Ray movies.
post #44 of 210
Quote:
Originally Posted by freddych View Post

This is a flawed argument. With e-book sales, no warehouse is needed at all. Publishers could simply reduce the amount of warehouse space they lease as they increased the number of e-books they sold, as with all incremental costs associated with printing traditional books.

Also, the more e-books that are sold, the less the costs will be per book associated with creating those e-books. Since the marginal cost of an e-book is 0, the costs can only go down.

Publisher's have a vested interest in their distributors and retailers. But if the e-book model proves successful, and it WILL be, we're going to see bookstores go the way of music stores and die. (Sorry, it's inevitable.)

E-books are more profitable and the publishers know this. But publishers think that the average consumer is willing to pay more. Don't let them try to tell you otherwise.

That's oversimplifying the issue. You can't simply lease less and less of a building, and that's assuming the publishers don't own their own, which would make it even more difficult.

And where do you get the "pay more". I see the numbers as "pay less".
post #45 of 210
Quote:
Originally Posted by ahmlco View Post

First, study some basic economics. PROFIT is what's left over AFTER you pay all of your expenses. Or didn't you figure that out after running your corner lemonade stand?...

This is really just rude. And it's totally false.

The analysis *includes* all the major costs and talks about "profit."

The only costs they don't mention are the random ancillary costs that any paper book produces which are figured into the cost of the paper edition. Making an electronic edition on top of that incurs no new costs (other than the $1.28 mentioned), and all those hypothetical costs are already budgeted into the paper copy anyway.

Why don't you read a bit and figure out what you're talking about before you crap all over someone else?
post #46 of 210
Quote:
Originally Posted by Foo2 View Post

Most movies are "unprofitable", too, yet somehow the film studios just keep on making them!

I believe publishers have an unrealistic idea of how much consumers are willing to pay for an e-book, given the new limitations the typical e-book DRM brings with it. And I believe publishers haven't a clue how many people would like to build considerable e-book collections, but only if e-books are discounted significantly relative to print editions, and not if the e-books look terrible or if the e-books are unavailable for the Mac (hint, hint Amazon!)

IMHO If someone buys the hard bound version of a book, the electronic version should be discounted even more to them--and especially so for technical e-books which are currently way, way, way overpriced.

They do, because the ones that make big money, make really BIG money. That goes to finance other movies, and the hope is that the average will end up as a profit.
post #47 of 210
Quote:
Originally Posted by sheff View Post

whatever the hardcover is the digital should be way cheaper. They say apple grabs 30% - well what about a book store? They probably grab like 50%. Add to that no existant print and inventory fees and you got yourself a free unlimited copies that only need a tiny amount of server space and a lot of bandwidth. $10 bucks is perfect (considering I can't resell this thing like I can a physical book). $15 is pushing it and it would have to be an incredible best seller.

After you re-read the numbers in the article, if you still disagree with them, show us some other numbers you found at a reputable source.
post #48 of 210
Quote:
Originally Posted by Sky King View Post

Clearly, the book publishing industry is facing the same challenges that are driving the music industry nuts.
1. For years the music industry kept profit from the musician and charged high prices for vinyl, tape, CD, whatever. They want that to continue. But artists are more frequently refusing to give up profits to Sony/BMG, et al and are using their own labels.
2. Now some artists are finding ways to make a profit on their work while bypassing the "traditional" distribution systems.
3. The average (and in this case I mean under 30 years old) music consumer sees no reason to pay for the older, traditional, more expensive system.
4. THEREFORE THINGS ARE CHANGING RAPIDLY.
5. The sooner the book publishing industry starts to deal with the new reality the less money they will lose to a bunch of people who WILL find ways to share books no matter what kind of laws either the music or book publishing industries try to get enacted.

WAKE UP EVERYONE...THIS IS A NEW WORLD...CHANGE!

This.

The print publishers are trying to hold on to their old school style of distribution just like the big music labels are. Imagine if authors could find a way to get their work out without having to rely on the big publishers?

More and more musicians are self releasing ... and I think the book/mag/newspaper publishers are shitting themselves at the thought of authors doing the same.

The only thing is that it will take longer on the print side than it is on the music side. Audio transfers well to digital via the iPod/iPhone, mp3 players in general. eReaders seem to be a harder sell. People like paper. I know so may people who were happy to do away with CDs ... but god help anyone who tells them to give up books
post #49 of 210
Quote:
Originally Posted by dreyfus2 View Post

Well, books are more expensive in most of Western Europe - hardcover bestsellers costing 30-35 EUR (approx. $48) are nothing special. Book pricing (for current titles) is fixed here, so finding a different shop makes no difference. Amazon offers free shipping, but has the same prices - as I have three book stores in walking distance from my home, why not support smaller retailers?

Ok, so I understand why you don't see a problem with talking about list prices. In general in the USA books, especially NYTIMES best sellers are heavily discounted, typically 40% on a new release.

This just points out another problem with the current ebook model. In the current hard back model, the publisher gets his $13, and the retailer can charge anything they want. In fact the retailer can advertise the book as a loss leader, and sell it for $12. No approval needed from the publisher.

In the ebook model, the publisher gets a percentage of the sales price, so for a book to go on sale, requires both the retailer (Apple) and the publisher to agree on a sales price.
post #50 of 210
Quote:
Originally Posted by Gazoobee View Post

Okay, so using the same numbers, and taking into account the criticism below that it's "revenue" and not profit... The publishers are making approximately twice the revenue for eBooks as opposed to paper.

I've worked in the publishing industry before, for over ten years and I'm being really generous here in saying that they are only making double the profit actually. Most of the publishing industry is an inefficient scam-fest, much like the music industry.

The reality is quite different from even these carefully prepared numbers that they "leaked" to the media today. I can guarantee that this is part of a carefully planned PR push, not "straight-shooting" from the publishers as many seem to automatically assume here. For instance the reality of the difference between the "revenue" and the "profit" is rather spurious given that the eBooks are at this point an afterthought and all the ancillary costs are already budgeted out in the paper editions cost. Not to mention the fact that this breakdown is actually talking about costs and is therefore really "profit" and not revenue at all.

Then, as you refuse to believe these numbers, come up with some others that you can point us to that would show you are right, and that these are wrong. Otherwise, you just blowing smoke, as are the others here who just don't want to believe it without showing anything different. I was in the publishing industry as well, and these numbers look ok to me.
post #51 of 210
Quote:
Originally Posted by melgross View Post

Did you notice where he lives?

And the article certainly isn't B.S. I read the Times article, and they don't publish that kind of info for a lark. They are also a major publisher, you may realize, so they know the numbers.

Sorry, I didn't notice where he lives. I'm sure he is paying what he says!

If the publisher makes $4.05, less office space and electricity, when a hardcover bestseller is sold at $26, what do they make when it is sold for $10 to $15. They are not losing money!

I'll shut up now...
post #52 of 210


Sorry, but they neglect to say how the cover design, copy editing and other "overhead" is performed in house by workers making between $8-12/hr. Also, the marketing costs will be next to zero for iPad ebook sales as the adds will be placed on an Apple website for free similar to how iTunes works. As for the charges for converting to digital form and re-copyediting, manuscripts are already in digital form and copyedited before it is even before galley proofs (which are now digital docs that are printed for physical review). And when was the last time authors got 22-32% royalties? It's ore like 4-8% on a good day. (Yes some major authors will get more, but the majority of the titles are not written by them.

Bottom line is: WE DO EXPECT THE PRICES TO BE MUCH LOWER THAN FOR HARD COVER.

WE STILL REMEMBER HOW THE MUSIC INDUSTRY RIPPED EVERYONE OFF (EVEN THE MUSICIANS) WHEN CDs CAME OUT.









Quote:
Originally Posted by AppleInsider View Post

After the introduction of the iPad gave publishers leverage to raise e-book prices on the Amazon Kindle, a new report states that consumers have "unrealistic expectations" about how low e-book prices should be.

This week, The New York Times provided a breakdown on the economics of producing a book from the publisher's perspective. It noted that while printing costs go away when a book is reproduced in an electronic format, a number of expenses remain, including royalties and marketing.

The report said that while the average hardcover bestseller is $26, the cost to print, store and ship the book is just $3.25. That cost also includes unsold copies returned to the publisher by booksellers.

Publishers get roughly half -- $13 -- of the selling price of a book. But after factoring in payments to the author and the cost of cover design and copy editing, only about $4.05 is left. And, the report noted, that doesn't even include overhead such as office space and electricity.

Under Apple's agreement with publishers for the iBookstore, the hardware maker will keep 30 percent of each book sale, leaving $9.09 for the publisher on a typical $12.99 e-book.

"Out of that gross revenue, the publisher pays about 50 cents to convert the text to a digital file, typeset it in digital form and copy-edit it," the report said. "Marketing is about 78 cents."

Author's royalty can range from $2.27 to $3.25 on an e-book, leaving the publisher with between $4.56 and $4.54, before paying overhead costs. For comparison, under Amazon's $9.99 e-book model, publishers would take in between $3.51 and $4.26 before overhead.

"At a glance, it appears the e-book is more profitable," the report said. "But publishers point out that e-books still represent a small sliver of total sales, from 3 to 5 percent. If e-book sales start to replace some hardcover sales, the publishers say, they will still have many of the fixed costs associated with print editions, like warehouse space, but they will be spread among fewer print copies."

Publishers are also wary of making e-books too cheap for fear of killing off booksellers like Barnes & Noble.

Apple will serve books for the iPad through its iBookstore, due to be a part of the iBooks application for iPad. The software features a 3D virtual bookshelf displaying a user's personal collection, and allows the purchase of new content from major publishers. Like the Kindle, it will offer content from the New York Times Bestsellers list.

The introduction of the iPad has driven publishers to force Amazon into higher prices for new hardcover bestsellers. While books are currently priced at $9.99 on the Kindle, that is expected to rise to between $12.99 and $14.99 by the time the iPad launches later this month.

The charge was led by Macmillan, which was followed soon after by Hachette Book Group and HarperCollins in renegotiating with Amazon.

Last week it was revealed that Amazon frantically phoned publishers as Apple co-founder Steve Jobs gave his keynote introducing the iPad in July.

While publishers had their way and Amazon reluctantly agreed to higher prices, not every bestseller will carry the new, higher premium price. It has been said that while higher prices are an option for publishers, and most new titles will be between $12.99 and $14.99, publishers can also choose to lower prices on select titles.
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post #53 of 210
Everyone's forgetting the main point of the article:

"Last week it was revealed that Amazon frantically phoned publishers as Apple co-founder Steve Jobs gave his keynote introducing the iPad in July."

umm, it was JANUARY...
post #54 of 210
Quote:
Originally Posted by Gazoobee View Post

This is really just rude. And it's totally false.

Profit isn't what's left over after costs? Who knew?

Quote:
The analysis *includes* all the major costs and talks about "profit."

It sure isn't $13 on a $26 book. That's STILL revenue after which costs are deducted.

The final value is $3.51-$4.26 before overhead in the analysis.

Quote:
The only costs they don't mention are the random ancillary costs that any paper book produces which are figured into the cost of the paper edition. Making an electronic edition on top of that incurs no new costs (other than the $1.28 mentioned), and all those hypothetical costs are already budgeted into the paper copy anyway.

Why don't you read a bit and figure out what you're talking about before you crap all over someone else?

Because you're wrong. The cost of producing an ebook isn't simply the additional $1.28 cost over converting it from paper to ebook. Copy editing, cover design, royalties, etc must still be paid and recovered across all editions, hardback, ebook, paperback, etc.

Why? Because each ebook sale is likely a reduction in paper sale. This is why they worry brick and mortar stores like B&N will go under. If ebooks cost zero paper sales there would be zero danger of that.

Handwaving away the total costs of production is silly and you got dinged for it.
post #55 of 210
Quote:
Originally Posted by sticknick View Post

This.

The print publishers are trying to hold on to their old school style of distribution just like the big music labels are. Imagine if authors could find a way to get their work out without having to rely on the big publishers?

More and more musicians are self releasing ... and I think the book/mag/newspaper publishers are shitting themselves at the thought of authors doing the same.

The only thing is that it will take longer on the print side than it is on the music side. Audio transfers well to digital via the iPod/iPhone, mp3 players in general. eReaders seem to be a harder sell. People like paper. I know so may people who were happy to do away with CDs ... but god help anyone who tells them to give up books

Sort of like how a band can get their song onto iTunes without a music publisher.
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post #56 of 210
Quote:
Originally Posted by sheff View Post

whatever the hardcover is the digital should be way cheaper. They say apple grabs 30% - well what about a book store? They probably grab like 50%. Add to that no existant print and inventory fees and you got yourself a free unlimited copies that only need a tiny amount of server space and a lot of bandwidth. $10 bucks is perfect (considering I can't resell this thing like I can a physical book). $15 is pushing it and it would have to be an incredible best seller.

The hardcover is about twice the price of the ebook even at $13-15 so your wish is granted?
If it is $15 then Apple takes about $4.50 leaving $10.50. If you net out the print costs minus the digitization costs then the publisher gets about $10.20 from the print version at the same point in the cost model.
At a $9.99 gross price, I doubt the publishers were making anything - probably trying to prime the market with their arms twisted by Amazon who wanted to sell Kindles and create a bulwark in the ebook market.
post #57 of 210
Quote:
Originally Posted by Gazoobee View Post

The analysis *includes* all the major costs and talks about "profit."

The only costs they don't mention are the random ancillary costs that any paper book produces which are figured into the cost of the paper edition. Making an electronic edition on top of that incurs no new costs (other than the $1.28 mentioned), and all those hypothetical costs are already budgeted into the paper copy anyway.

What you aren't taking into account is that every sale has to account for all the costs other than the print costs, which aren't very much. So you take the $3 and change away from the price for the e-book price, and instead add the $1.28. Not much of a difference, is there?

Some are assuming that none of the costs associated with the publishing of a book should go to the price of the e-book version, but that's clearly wrong.

The author still gets the advance. After that's paid off (hopefully), (s)he gets the royalty. All the other costs still have to be accounted for as well. And just like other products, most of those costs are paid off early. Hopefully they are paid off before the hardcover goes out of print. That's why later editions are so much cheaper.

None of those costs are associated with printing, and so e-books must bear their part of what's left of them. Why is that a problem to understand?
post #58 of 210
Quote:
Originally Posted by Gazoobee View Post

This is really just rude. And it's totally false.

The analysis *includes* all the major costs and talks about "profit."

The only costs they don't mention are the random ancillary costs that any paper book produces which are figured into the cost of the paper edition. Making an electronic edition on top of that incurs no new costs (other than the $1.28 mentioned), and all those hypothetical costs are already budgeted into the paper copy anyway.

Why don't you read a bit and figure out what you're talking about before you crap all over someone else?

AND THAT $1.28 IS INFLATED or EVEN BOGUS!
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post #59 of 210
I would have to ask the question: If you were getting by just fine on $9.99 prior to the iPad rollout, then what is the excuse to claim the additional $4 bucks is needed, except to gouge the customer?

If it wasn't profitable, they wouldn't be selling it, even at $9.99.
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post #60 of 210
Quote:
Originally Posted by Gazoobee View Post

Okay, so using the same numbers, and taking into account the criticism below that it's "revenue" and not profit... The publishers are making approximately twice the revenue for eBooks as opposed to paper.

Gee...the $9.09 revenue from ebooks is double the $13 revenue from paper books. Amazing.

Quote:
I've worked in the publishing industry before, for over ten years...

Hopefully not in accounting.

Quote:
For instance the reality of the difference between the "revenue" and the "profit" is rather spurious given that the eBooks are at this point an afterthought and all the ancillary costs are already budgeted out in the paper editions cost. Not to mention the fact that this breakdown is actually talking about costs and is therefore really "profit" and not revenue at all.

Except that publishers do realize that ebook sales take away from paper sales unlike self-proclaimed 10 year veterans of the industry.

Yes, yes, I know Baen says different and for them I believe that to be somewhat true given their client base. Anyone willing to pony up $15 for an advanced reader copy likely wants the hardback in their library as well. That's probably not true for the larger market.
post #61 of 210
Quote:
Originally Posted by sticknick View Post

This.

The print publishers are trying to hold on to their old school style of distribution just like the big music labels are. Imagine if authors could find a way to get their work out without having to rely on the big publishers?

More and more musicians are self releasing ... and I think the book/mag/newspaper publishers are shitting themselves at the thought of authors doing the same.

The only thing is that it will take longer on the print side than it is on the music side. Audio transfers well to digital via the iPod/iPhone, mp3 players in general. eReaders seem to be a harder sell. People like paper. I know so may people who were happy to do away with CDs ... but god help anyone who tells them to give up books

And as the music publishers disappear, and the book publishers disappear, the average quality of output will drop to the "crap" level.

Most self published work is that way because it's not good enough for publishers to touch it. Same thing with music. I acknowledge there are the rare exceptions.
post #62 of 210
Quote:
Originally Posted by AppleInsider View Post

This week, The New York Times provided a breakdown on the economics of producing a book from the publisher's perspective. It noted that while printing costs go away when a book is reproduced in an electronic format, a number of expenses remain, including royalties and marketing.

I wonder how many actually read the whole article before they commented?


I also wonder why some people here dis every article that AppleInsider publishes. Fortunately, I would like to ignore them. However, it is virtually impossible to do so, as long as somebody else responds to their trolling, the crap still shows up.

To answer my own question, I have a feeling that they don't, primarily because they can't.
post #63 of 210
Quote:
"Out of that gross revenue, the publisher pays about 50 cents to convert the text to a digital file, typeset it in digital form and copy-edit it," the report said.

this sentence makes no sense to me.... it takes 50 cent's from each digital copy sold to "convert the text to digital file"?
what? bullshit. I imagine these books are digital ALREADY, and even if there are conversion and reformatting costs to get it into an ebook format, I find it highly unlikely it is anywhere close to the cost of formatting a book for print.
post #64 of 210
Quote:
Originally Posted by melgross View Post

That's oversimplifying the issue. You can't simply lease less and less of a building, and that's assuming the publishers don't own their own, which would make it even more difficult.

And where do you get the "pay more". I see the numbers as "pay less".

Warehouse space can be sold or reduced. Sure, it takes a couple years, but it can be done. It's not like they are locked into these leases into eternity. I know this because I am both a landlord and I operate a wholesale business which has grown and shrunk. It's a tremendous pain in the ass and it takes a landlord that is willing to work with you. But you always have the option of moving out (or selling, if you own it).

When I say pay more, it refers to paying more than the current 9.99 Amazon price.

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post #65 of 210
Quote:
Originally Posted by DJRumpy View Post

I would have to ask the question: If you were getting by just fine on $9.99 prior to the iPad rollout, then what is the excuse to claim the additional $4 bucks is needed, except to gouge the customer?

If it wasn't profitable, they wouldn't be selling it, even at $9.99.

Because it wasn't $9.99. Amazon was sucking up the difference and taking a loss in order to dominate the eBook market. The expectation was that the other ebook vendors would go broke trying to match Amazon's pricing because they didn't have the revenue streams that Amazon has from non-books.
post #66 of 210
In the end, there has got to be some leveling out of symbiosis between print and digital. I see the huge benefits for both the educational and the general public markets for consuming information - but I find it difficult to get past the idea that digital will ever replace paper for the majority of how the world absorbs and communicates information (outside of the tech savvy niches we are a part of) ... until a day comes when we all stop grabbing sticks, pencils, pens, crayons etc. to scratch down our thoughts.

As I become more in tune with the potential the iPad represents, I wonder about the gap in a person's/state's/ country's ability to access & process information that will grow between the ol' class battles we've been dealing with for centuries.

I am a long-time fan and customer of Apple products and I'm just worried that the further (and faster) we reach into the future, a growing chunk of the planet will remain in the past. It's not a simple matter of producing the latest and greatest electronic gadget, I think that the iPad represents a paradigm shift in learning and communication - a much bigger issue that'll get tons of scrutiny over the coming years.

Aside from Apple's Green initiatives of late, maybe it's time to direct a slice of their war chest toward classic literacy and learning initiatives.

Wow, I had no idea I was gonna head in this direction when I clicked 'Reply'...
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post #67 of 210
Quote:
Originally Posted by artse View Post

Sorry, I didn't notice where he lives. I'm sure he is paying what he says!

If the publisher makes $4.05, less office space and electricity, when a hardcover bestseller is sold at $26, what do they make when it is sold for $10 to $15. They are not losing money!

I'll shut up now...

Even publishers lose money on books. And no, I've never seen a new hardcover selling for $10 to $15 outside of Costco, which does sell them at no profit, or even a small loss. And as I mentioned, Costco usually gets book club editions, which are cheaper.

I dont know where you guys are coming up with those numbers. Where did you EVER buy a new hardcover for $10 outside of a Costco or other buying club?

You really need to give a real answer, because you can't simply pull numbers like that out of nowhere.
post #68 of 210
Quote:
Originally Posted by derev View Post

AND THAT $1.28 IS INFLATED or EVEN BOGUS!

Please prove that to us, as you seen to know.
post #69 of 210
Quote:
Originally Posted by DJRumpy View Post

I would have to ask the question: If you were getting by just fine on $9.99 prior to the iPad rollout, then what is the excuse to claim the additional $4 bucks is needed, except to gouge the customer?

If it wasn't profitable, they wouldn't be selling it, even at $9.99.

Not true. Amazon was selling books at a loss to get more sales of the Kindle, and to apparently in an attempt to, at sometime in the future, get publishers to accept less. Also, at least 80% of the books they were selling were free.

As Amazon has never given any information out about actual numbers of Kindles sold, or e-books sold, or the average price of e-books sold, the assumption has been that they are taking a big beating on it. They constantly refuse to answer any questions on the subject.
post #70 of 210
Quote:
Originally Posted by Zendolphyn View Post

In the end, there has got to be some leveling out of symbiosis between print and digital. I see the huge benefits for both the educational and the general public markets for consuming information - but I find it difficult to get past the idea that digital will ever replace paper for the majority of how the world absorbs and communicates information (outside of the tech savvy niches we are a part of) ... until a day comes when we all stop grabbing sticks, pencils, pens, crayons etc. to scratch down our thoughts.


I completely disagree. When you look at the evolution of consumer consumption of media, you see a overarching trend towards digital delivery.

Newspapers are getting destroyed because people aren't paying for printed content anymore. And they are having trouble monetizing the internet distribution model. But it is moving towards an internet distribution model whether they like it or not.

With books, the power is concentrated in a smaller number of publishers. The iBook store will lower the entry costs to get into the publishing game. The number of devices ready to accept e-books is not at critical mass yet. But with the introduction of new Kindle models and the iPad, it has the potential to get there.

My guess: as the iPad and Kindle start to gain in popularity, e-Books will start to become the main delivery method of books to consumers, just as digital audio is the main delivery method of music. You'll see smaller, newer, more nimble publishers as the barriers to entry (cost of printing machines, warehouses, distribution networks) start to come down. And the death of the bookstore like we've seen the death of the music store.

And all of it is a good thing. It's more efficient, its cheaper for the consumer, and it provides in most cases a better experience.

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post #71 of 210
Why would any publisher charge significantly less for their e-books? Because the cost of production is cheaper? Is buying an album on iTunes that much cheaper than buying a CD? No, in fact I can usually find the CD on sale at the same price or $1 more. Why would anyone expect e-books to be drastically different than music downloads? You save a buck or two on an e-book, and with sale pricing I'm sure consumers will pay even less. Last year we found out Apple's profit margins for the iPhone are around 60%, no one questions why Apple doesn't bring down the price. If the demand is there - why in the world would you?

This is simple: the market will decide. Publishers can charge whatever they want, its up to the consumer to buy.
post #72 of 210
Quote:
Originally Posted by melgross View Post

They do, because the ones that make big money, make really BIG money. That goes to finance other movies, and the hope is that the average will end up as a profit.

Right.
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post #73 of 210
Quote:
Originally Posted by freddych View Post

Warehouse space can be sold or reduced. Sure, it takes a couple years, but it can be done. It's not like they are locked into these leases into eternity. I know this because I am both a landlord and I operate a wholesale business which has grown and shrunk. It's a tremendous pain in the ass and it takes a landlord that is willing to work with you. But you always have the option of moving out (or selling, if you own it).

When I say pay more, it refers to paying more than the current 9.99 Amazon price.

You lease warehouses for years at a time. Those leases can be twenty years long. And many companies in businesses like that own their own.

In these days of depreciating building markets, most landlords are not going to be that easy bout allowing companies out of long term leases made when times were looking up. At the very least, the penalty would be large. I know the business from the other end. My first company went from leasing space to buying our own building, and my second leased several floors.

Besides, this will be a deterioration of conditions that will take place over years. There may be no point in which a company will be able to let go of a specified amount of space until years have gone by. You can't release 5% of your space at a time. You know it doesn't work that way.
post #74 of 210
I really don't care what a publisher's fixed costs are. If I like or want the book, I'll buy it regardless of price. Just don't trot out a bunch of bull justifying these inflated prices for e-books when common sense would tell anyone that the price of a physical book is going to be higher than an electronic version, but an electronic version 'near' the price of a physical book... baloney!

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Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

Reply
post #75 of 210
Quote:
Originally Posted by Woohoo! View Post

Actually if the iPad had and rentals and the DRM to enforce it wouldn't be so bad, because rental prices are cheaper than buying and there is ALWAYS a way around DRM schemes.

I wonder if one could scan a iPad screen like a paper book? OCR the results?

Just hold home and lock and take a screenshot. Pirating E-Books is going to probably be the easiest thing even on the iPad, and if the screenshot capabilities are removed, then I'm sure someone will make a jailbreak app that does it easier and faster. Sucks for anyone who's trying to make money,but you're right, theres always a way around DRM, and especially when it's something you just look at.
post #76 of 210
Quote:
Originally Posted by Abster2core View Post

I wonder how many actually read the whole article before they commented?
I also wonder why some people here dis every article that AppleInsider publishes. Fortunately, I would like to ignore them. However, it is virtually impossible to do so, as long as somebody else responds to their trolling, the crap still shows up.

To answer my own question, I have a feeling that they don't, primarily because they can't.

If a well known author really wanted to make some money, they'd hire their own editor, PR team, typesetter, graphic designer, etc. and simply sell direct to the public via iTunes. I got the impression that an author like Dan Brown already has some kind of production team or cross-promotional sharing agreement, if you saw him on the Today Show promoting his last book it seemed like he was there all week.

What will keep the star authors from taking their books direct to iTunes? Nothing except for long term or exclusive contracts.

Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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Proud AAPL stock owner.

 

GOA

 

Get the lowdown on the coming collapse:  http://www.cbo.gov/publication/45010

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post #77 of 210
Quote:
Originally Posted by melgross View Post

You lease warehouses for years at a time. Those leases can be twenty years long. And many companies in businesses like that own their own.

In these days of depreciating building markets, most landlords are not going to be that easy bout allowing companies out of long term leases made when times were looking up. At the very least, the penalty would be large. I know the business from the other end. My first company went from leasing space to buying our own building, and my second leased several floors.

Besides, this will be a deterioration of conditions that will take place over years. There may be no point in which a company will be able to let go of a specified amount of space until years have gone by. You can't release 5% of your space at a time. You know it doesn't work that way.

Still, there are other options such as sub-leasing. If you own your own warehose, you have the flexibility of selling the warehouse.

Sure, if you have only 10,000 sf of warehouse space, you won't be able to reduce your space by 500 sf But if you are a large publisher and have 1,000,000 sf of warehouse space, you can definately reduce your space by 50,000 sf.

Rent is ridiculously cheap anyways. It's the labor involved with distribution that is expensive. And that can be cut at a moment's notice.

iPad2 16 GB
iPhone 5 32 GB

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iPad2 16 GB
iPhone 5 32 GB

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post #78 of 210
Quote:

I tink a lot of what sites like that write as mostly BS. While there's fraud in every business, and just think of how many times you got something you should have paid for, but didn't, the fact till remains that most movies lose money.

All you have to do is look at the top ten listings. You'll see some pretty big budget movies sinking the second week into irrelevancy. In fact, many big budget movies do that the first week. What happens then?
post #79 of 210
Quote:
Originally Posted by SpamSandwich View Post

If a well known author really wanted to make some money, they'd hire their own editor, PR team, typesetter, graphic designer, etc. and simply sell direct to the public via iTunes. I got the impression that an author like Dan Brown already has some kind of production team or cross-promotional sharing agreement, if you saw him on the Today Show promoting his last book it seemed like he was there all week.

What will keep the star authors from taking their books direct to iTunes? Nothing except for long term or exclusive contracts.

Once the ipad/kindle become as ubiquitous as the ipod, I could see this happening. I could even see a low-cost small publisher merely providing the service of putting the book up on iTunes.

iPad2 16 GB
iPhone 5 32 GB

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iPad2 16 GB
iPhone 5 32 GB

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post #80 of 210
Quote:
Originally Posted by AppleInsider View Post

The report said that while the average hardcover bestseller is $26, the cost to print, store and ship the book is just $3.25. That cost also includes unsold copies returned to the publisher by booksellers.

Now there will be zero returned/unsold books.
Quote:
"Out of that gross revenue, the publisher pays about 50 cents to convert the text to a digital file, typeset it in digital form and copy-edit it," the report said.

This is done one time, regardless of how many copies are sold.
Copy-edit will take the most time/effort though this cost should have been included before the "printing".
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