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There is an intermediate market between publishers and their ultimate consumers. They were selling their products at the same price as they are now to Amazon be
by danharaj 11y ago
There is an intermediate market between publishers and their ultimate consumers. They were selling their products at the same price as they are now to Amazon before, it's just that Amazon was allowed to take a loss on the sales to build marketshare which possibly prevented other players from entering the distribution market.
Are you unconvinced that allowing Amazon to absorb losses in order to dominate their distribution market is possibly bad for them? Or are you satisfied with treating them with contempt because it's so "obvious" to you that they're being boneheaded?
- Turing_Machine 11y ago"it's just that Amazon was allowed to take a loss on the sales" That is absolutely not true. The marginal cost of delivering an ebook is so close to zero that it's hardly worth calculating. Amazon (or anyone else) can easily deliver ebooks for $0.99 and still make a profit on every single sale.
- danharaj 11y agoThey bought the ebooks for 15 dollars and sold them for 10 dollars.
- Turing_Machine 11y agoNo, they did not. Perhaps a occasional loss-leader was marked down that much, but overall Amazon has always sold ebooks for more than the cost of acquisition.