Wednesday, 21 July 2010


CNET's David Carnoy Looks Beneath The Amazon Numbers


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David Carnoy on CNET Reviews has some pretty sharp analysis on Amazon's announcement this week that e-books were now outstripping hardback sales. His piece yesterday called What Amazon didn't say about e-books questions what might really be case if Amazon actually revealed gross revenue figures behind e-books and hardbacks.

"I'd like to see gross revenue from e-books vs. gross revenue from hardcovers. Until recently, Amazon was actually losing money on bestsellers that it sold for $9.99 when their wholesale price from publishers was around $12 or more. Now that the publishing industry has shifted to an "agency" model, Amazon is taking a 30 percent cut, but the prices of many e-book titles are higher, possibly squelching demand. Amazon hasn't told us yet whether the higher prices have had any impact on sales. Most Kindle users I talk to say they are buying fewer traditionally published Kindle titles because many cost over $9.99."

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