Amazon vs. Hachette

Amazon a publicat o interesantă scrisoare deschisă în care vorbesc despre disputa lor cu Hachette în legătură cu preţul cărţilor electronice. Tind să le dau dreptate. Era evident că, în ciuda a ceea ce spun editurile, preţul cărţilor electronice era nejustificat de mare. De asemenea, este foarte logic că datorită formatului electronic extrem de elastic, preţurile mai mici ale cărţilor electronice aduc cu ele vânzări mult mai consistente. Îmi pare rău să o spun, dar este din ce în ce mai clar faptul că Hachette lupta împotriva unei schimbări inevitabile, schimbare care este în mare parte în beneficiul autorilor.

Many e-books are being released at $14.99 and even $19.99. That is unjustifiably high for an e-book. With an e-book, there’s no printing, no over-printing, no need to forecast, no returns, no lost sales due to out-of-stock, no warehousing costs, no transportation costs, and there is no secondary market — e-books cannot be resold as used books. E-books can be and should be less expensive.

It’s also important to understand that e-books are highly price-elastic. This means that when the price goes up, customers buy much less. We’ve quantified the price elasticity of e-books from repeated measurements across many titles. For every copy an e-book would sell at $14.99, it would sell 1.74 copies if priced at $9.99. So, for example, if customers would buy 100,000 copies of a particular e-book at $14.99, then customers would buy 174,000 copies of that same e-book at $9.99. Total revenue at $14.99 would be $1,499,000. Total revenue at $9.99 is $1,738,000.

The important thing to note here is that at the lower price, total revenue increases 16%. This is good for all the parties involved:

# The customer is paying 33% less.

# The author is getting a royalty check 16% larger and being read by an audience that’s 74% larger. And that 74% increase in copies sold makes it much more likely that the title will make it onto the national bestseller lists. (Any author who’s trying to get on one of the national bestseller lists should insist to their publisher that their e-book be priced at $9.99 or lower.)

# Likewise, the higher total revenue generated at $9.99 is also good for the publisher and the retailer. At $9.99, even though the customer is paying less, the total pie is bigger and there is more to share amongst the parties.

One more note on our proposal for how the total revenue should be shared. While we believe 35% should go to the author and 35% to Hachette, the way this would actually work is that we would send 70% of the total revenue to Hachette, and they would decide how much to share with the author. We believe Hachette is sharing too small a portion with the author today, but ultimately that is not our call.

2 Comments

  1. eu tindeam de la inceput sa le dau dreptate 🙂
    numai eliminarea costurilor cu retururile, stocuri si casari, si s-ar merita un pret mai accesibil pentru formatul digital.

  2. Amazon are avantajul unei piete imense si unui volum de vanzari suficient de mare, de fapt imens si el, care ii permite sa experimenteze si sa traga concluzii. Argumentele lor sunt puternice, librarii isi trag suflarile dinaintea agoniei. Nu se va intampla ca in cazul muzicii, de carti vom avea nevoie in continuare, dar e clar ca de rezistat vor rezista doar cei mai.

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