Tuesday, November 20, 2007

Amazon Reading Device Doesn’t Need Computer - New York Times

The long tail of ebook distribution...

Amazon and the publishers declined to discuss the specifics of their financial arrangements. But several publishing executives said the industry practice was to sell an electronic version of a hardcover with a list price of $27 for about $20. While deals vary, the wholesale price of a $20 e-book is about $10, and most retailers have been selling them for about $16. The publishers said Amazon was paying about the same wholesale price as Sony and other e-book vendors.

By offering best sellers for $9.99, Amazon is leaving no profit margin, and it will have the expense of paying Sprint for the data transmission. Amazon says it hopes to make money on older titles that have better profit margins.

p.s. when did Amazon formally drop the ".com" in its name?...

Amazon Reading Device Doesn’t Need Computer - New York Times

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