Amazon loses $ 2 on each e-book

    It's just amazing how weird the e-book market is. Buyers complain that books are too expensive, and publishers are unhappy with their cheapness. But it turns out that online stores earn almost nothing. As it turned out, the same Amazon loses $ 2 on every e-book sold. The fact is that Amazon sells most books for the Kindle “reader” at a single rate of ten dollars, and publishers receive $ 12 and are still unhappy that the electronic version brings less money than the paper one.

    It is still unclear whether electronic publishing will be on its feet and in what form, but Amazon pays for its popularization out of pocket. Of course, this is done not for the sake of charity, but to capture the market.

    At the same time, there are rumors that e-books will soon be on sale on iTunes, and then Amazon will have to be tight.

    Amazon currently controls half of the US e-book market. Theoretically, this market has good prospects, because the profile of readers of books normally coincides with the profile of lovers of electronic gadgets: a relatively young audience (two-thirds of book buyers are less than 55 years old), well-educated, with high incomes.

    According to analysts, with the transition to electronic distribution, publishers will have to change business models. Most importantly, they should lower prices (the normal price for an e-book is $ 5, not $ 10-12), so price wars are inevitable. If someone manages to sell electronic books for $ 10 apiece, then he will get superprofits.

    With the complete rejection of paper printing, the profitability of the publishing business may even increase, although the overall income will fall (see the table where business models are compared). Copyright fees that are tied to the retail price will also decline. These are the prospects that are not very bright for publishers and writers.

    Worst of all, an ideal model with a 100% transition to electronic book publishing (as in the table) is unlikely to be realized in the foreseeable future. That is, book publishers can fall into the same trap as the newspaper / magazine business, namely: they cannot refuse paper, and they will have to bear all the associated printing costs, while the audience will gradually go online. It turns out that the print run is falling and brings less money, and printing costs remain high, and it is almost impossible to correct the situation until 100% of the audience goes online.

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