This interesting article from the New Yorker (April 26, 2010) provides an interesting look into the book publishing industry. Here are some snippets that I took from his insightful article:
- e-books (although increasing in popularity) account for 3-5% of the market
- "Amazon had been buying many e-books from publishers for about $13 and selling them for $9.99 to increase market share and encourage sales of the Kindle."
- Publishers didn't like the $9.99 price and was concerned about setting a price precedent in buyer's minds.
- "The decision to enter publishing was a reversal for [Steve] Jobs, who two years ago said the book publishing industry was unsalvageable."
- "Traditionally, publishers have sold books to stores, with the wholesale price for hardcovers set at fifty per cent of the cover price."
- "Authors are paid royalities at a rate of about fifteen per cent of the cover price."