Publishers line up against Amazon’s $9.99 e-books

[Cogman]

http://venturebeat.com/2010/02/05/hachette-amazon-harpercollins-macmillan-apple/

Dang greedy publishers. E-books cost NOTHING to distribute, yet publishers want to charge the same price if not more for an E-Book then a printed book. All while screwing over the authors. They're just as bad as the music industry.

 

[ChaoZ]

I wonder what they'll do when more people discover ebook torrents.

 

[Hacp]

http://venturebeat.com/2010/02/05/hachette-amazon-harpercollins-macmillan-apple/

Dang greedy publishers. E-books cost NOTHING to distribute, yet publishers want to charge the same price if not more for an E-Book then a printed book. All while screwing over the authors. Their just as bad as the music industry.

All due to copyright regulation. If I want to scan my book and have my computer electronically read it to me, its apparently against the law. Government regulation at its finest.

 

[SunSamurai]

You can scan your book and have it read to you all you want. You cannot have it in a shared folder for other people to do the same.

 

[Cogman]

All due to copyright regulation. If I want to scan my book and have my computer electronically read it to me, its apparently against the law. Government regulation at its finest.

I will say this, it is a great way to kill off the iPad and kindle. Why would someone buy a volatile ebook, for more then a used book, vs something that is easy on the eyes to read and lasts practically forever.

 

[Capt Caveman]

http://venturebeat.com/2010/02/05/hachette-amazon-harpercollins-macmillan-apple/

Dang greedy publishers. E-books cost NOTHING to distribute, yet publishers want to charge the same price if not more for an E-Book then a printed book. All while screwing over the authors. Their just as bad as the music industry.

May cost nothing to distribute but cost a whole lot to produce. At $9.99, publishers would lose money on each sale if Amazon didn't absorb the loss to build market share.

 

[Capt Caveman]

I will say this, it is a great way to kill off the iPad and kindle. Why would someone buy a volatile ebook, for more then a used book, vs something that is easy on the eyes to read and lasts practically forever.

The pricing is for new books. Unless, you're willing to wait a year or more, it's less expensive than buying a hardcover book.

 

[fuzzybabybunny]

I wonder what they'll do when more people discover ebook torrents.

Seriously. Do they (everyone along the production chain from authors to publishers) not understand that with prices that high they're opening themselves wide open to actively fostering a demand for people to pirate (which pirates will gladly supply)? You would think that they would learn from what happened with MP3s....

I will NOT pay $15 for a simple book. I just won't. Not going to happen. Charge $5 for them and I will be buying them left and right.

 

[Capt Caveman]

Seriously. Do they (everyone along the production chain from authors to publishers) not understand that with prices that high they're opening themselves wide open to actively fostering a demand for people to pirate (which pirates will gladly supply)? You would think that they would learn from what happened with MP3s....

I will NOT pay $15 for a simple book. I just won't. Not going to happen. Charge $5 for them and I will be buying them left and right.

They're already losing money at $9.99, now you want them to charge $5 for a new book? Wow.

 

[mugs]

Dang greedy publishers. E-books cost NOTHING to distribute, yet publishers want to charge the same price if not more for an E-Book then a printed book. All while screwing over the authors. They're just as bad as the music industry.

Physical books don't cost much to produce and distribute either. You're not paying for the medium, you're paying for the content.

If they want to charge $15 for an eBook after the mass market paperback comes out, then I think that's a bad idea. Charging $15 for an eBook when the book is only available in hardcover is not at all unreasonable. They're making LESS profit on the eBook than on the hardcover.

 

[Cogman]

May cost nothing to distribute but cost a whole lot to produce. At $9.99, publishers would lose money on each sale if Amazon didn't absorb the loss to build market share.

How would they lose money on each sale? The product is completely electronic, sold, distributed, and advertised electronically. It litterally costs 0 resources to distribute and create a copy. That is essentially $10 of pure profit with basically no overhead attached to it. Yes, it costs money to produce the book, but that is pretty much the only cost of the book (apart from advertisement and production, which exists regardless of whether the book is printed or distributed electronically).

Compare that to the manufacturing devices, the laborers, the materials, the distribution system, and all the sudden a complete profit of $10 sounds a whole heck of a lot better then what they make from their printed books.

This is greed, pure and simple.

 

[Kelvrick]

They're already losing money at $9.99, now you want them to charge $5 for a new book? Wow.

Anything to back up your statements? I actually prefer real books but am curious as to how they lose money on selling something electronic for 9.99 when they don't have to distribute or produce anything physical.

 

[Cogman]

Physical books don't cost much to produce and distribute either. You're not paying for the medium, you're paying for the content.

If they want to charge $15 for an eBook after the mass market paperback comes out, then I think that's a bad idea. Charging $15 for an eBook when the book is only available in hardcover is not at all unreasonable. They're making LESS profit on the eBook than on the hardcover.

Ok, I could see it from a point of view that a bought e-book = a lost hard cover sale. But still, you don't get any extra features that I could reasonably justify it being so expensive.

 

[lxskllr]

Ok, I could see it from a point of view that a bought e-book = a lost hard cover sale. But still, you don't get any extra features that I could reasonably justify it being so expensive.

People who buy hardcover are going to buy that anyway. Neither paperback, nor Ebooks are going to substantially diminish that market. Hardbacks are for enthusiasts.

 

[mugs]

Ok, I could see it from a point of view that a bought e-book = a lost hard cover sale. But still, you don't get any extra features that I could reasonably justify it being so expensive.

Personally, I buy pretty much all of my books used. I don't pay much more than $5 unless I really want the book. The Kindle doesn't appeal much to me because of the lack of a used book market.

On the other hand, with the Kindle I wouldn't have boxes of books in my basement.

 

[SamurAchzar]

Forget the $5 difference, what I'd be especially concerned about is Apple teaming up with the publishers, and creating an iTunes monopoly for written material (not just books, newspapers too). That goes far beyond the price you're going to pay for books - soon enough the content deals will lock everyone down, and you might discover that the only way to get published content online is through Apple and it's devices.

Currently Apple is the savior of the various media companies - it is considered cool, the devices are sexy, and most importantly it plays by their rules. It doesn't mind selling out the users, unlike Amazon in this case.

Be afraid, be very afraid.

 

[Capt Caveman]

How would they lose money on each sale? The product is completely electronic, sold, distributed, and advertised electronically. It litterally costs 0 resources to distribute and create a copy. That is essentially $10 of pure profit with basically no overhead attached to it. Yes, it costs money to produce the book, but that is pretty much the only cost of the book (apart from advertisement and production, which exists regardless of whether the book is printed or distributed electronically).

Compare that to the manufacturing devices, the laborers, the materials, the distribution system, and all the sudden a complete profit of $10 sounds a whole heck of a lot better then what they make from their printed books.

This is greed, pure and simple.

Anything to back up your statements? I actually prefer real books but am curious as to how they lose money on selling something electronic for 9.99 when they don't have to distribute or produce anything physical.

I used to work in the publishing industry doing financial analysis for a publishing unit.

From an author's manuscript to a published form that you read it goes thru many many steps. Acquisitions - signing authors to their label, best selling authors will receive $ millions in advances for x number of books plus future royalties. The vast majority of authors receive tons of assistance in getting their manuscripts to a finished product - ghost writers, editors, historians, researchers, etc...

Then you have marketing, legal, distribution, translation, royalty accounting, publishing(most outsource this). International distribution brings a whole other series of logistics and resources.

Note - not all titles are profitable thus profit margins are in place to cover them.

 

[DaveSimmons]

People who buy hardcover are going to buy that anyway. Neither paperback, nor Ebooks are going to substantially diminish that market. Hardbacks are for enthusiasts.

And a $259 book-reading device is not?

Amazon has always pushed the instant, wireless access to new books, especially New York Times (hardcover) bestsellers in their marketing, so it's more plausible than not that Kindle sales DO cannibalize sales of hardcovers.

 

[fuzzybabybunny]

They're already losing money at $9.99, now you want them to charge $5 for a new book? Wow.

All I'm saying is that everyone along the value chain needs to re-evaluate their business and pricing considering this new electronic medium that they're getting into. It's a whole different animal than paper, obviously. If they're losing money charging $10 for an e-book and can only be profitable at $15, then they're in for a world of hurt when the reality of the internet bites them. Hard.

They're going to need to cut costs, favor slimmer margins for higher volume, etc. From the very foundation, authors will need to demand less per book sold. Publishers will need to be more cost efficient. Retailers will need to price intelligently so as to minimize piracy. Their business model may have to fundamentally change to avoid what's happened to the music industry.

If there simply is no way to bring the costs down... then we all know exactly what will happen. In which case what will happen will happen.

 

[mugs]

Forget the $5 difference, what I'd be especially concerned about is Apple teaming up with the publishers, and creating an iTunes monopoly for written material (not just books, newspapers too). That goes far beyond the price you're going to pay for books - soon enough the content deals will lock everyone down, and you might discover that the only way to get published content online is through Apple and it's devices.

Currently Apple is the savior of the various media companies - it is considered cool, the devices are sexy, and most importantly it plays by their rules. It doesn't mind selling out the users, unlike Amazon in this case.

Be afraid, be very afraid.

I am afraid, because what you describe is exactly what happened when Apple got into the business of selling music, movies and TV shows.

And even if you do manage to avoid Apple's monopoly and get your media somewhere else, you can't even play it on Apple devices!

Wait, what?

 

[lxskllr]

And a $259 book-reading device is not?

Amazon has always pushed the instant, wireless access to new books, especially New York Times (hardcover) bestsellers in their marketing, so it's more plausible than not that Kindle sales DO cannibalize sales of hardcovers.

Hardcovers are for people who like BOOKS. Either for the collectibility of a particular author, or for the sensory experience of the book itself. Ebooks are utilitarian, and it's like comparing MS Word, to nice parchment, and a Pelican fountain pen. Both let you author works, but the parchment and pen are for enthusiasts.

 

[Capt Caveman]

Authors should also understand that e-books are opening up a whole world of opportunity to them. They can cut out considerable middle men as a result of electronic distribution.

You obviously didn't read my other post. Maybe, a few can but the vast majority of sales is still hard copy. If they want to sell a few online with no publishing assistance (ghost writers, editors, etc...). They're missing out on the bigger market, hard copy.

 

[mmntech]

Books have always been expensive. Want a real shocker? Check the Canadian pricing. Often books are up to 20% more in here than in the US, even when out dollar is at or near par. One of the reasons I don't read much. Even magazines are pushing $10 these days, and half the content is ads. When people complained, the publishers just removed the US pricing from the jackets in hopes nobody would notice! Gotta love the publishing biz in all it's satanic forms.

 

[Craig234]

Seriously. Do they (everyone along the production chain from authors to publishers) not understand that with prices that high they're opening themselves wide open to actively fostering a demand for people to pirate (which pirates will gladly supply)? You would think that they would learn from what happened with MP3s....

I will NOT pay $15 for a simple book. I just won't. Not going to happen. Charge $5 for them and I will be buying them left and right.

Well you're just wrong.

Authors don't just take a one third pay cut to make you happy. The prices of marketing don't take a one third pay cut to make you happy.

You get what you pay for. If you want crap, pay low prices. If you wan good books, pay for them.

If the money spent on book plummets, the number and quality of books will plummet. Like music.

 

[EarthwormJim]

Well you're just wrong.

Authors don't just take a one third pay cut to make you happy. The prices of marketing don't take a one third pay cut to make you happy.

You get what you pay for. If you want crap, pay low prices. If you wan good books, pay for them.

If the money spent on book plummets, the number and quality of books will plummet. Like music.

It doesn't make sense for an ebook to cost more than a paperback or even the same (let alone hardcover books). It costs less to produce an ebook than a paper book.

You also have zero risk of not selling every book you manufacture. Think about how much money is lost on hardcovers that go unsold.

Charging more for new releases is reasonable, it's the same model used now with hardcovers vs. paperbacks. But it's not right to continue charging that new release price when paperbacks that later come out are $5 or less. The ebook should be less than that $5. Looking at the Kindle store, books that have been in paperback form for decades are often above $5 (or above the paperback price). What the hell!

They are literally selling less to consumers. You can't do anything with an ebook without a reader of some sort. A book is a stand-alone product, an ebook is not. How can they justify charging more or the same?