Bezos made a huge mistake with it's gamble against McMillan. Their stock is down almost 7% today.
Bezos made a huge mistake with it's gamble against McMillan. Their stock is down almost 7% today.
Why is piracy acceptable if the price is too high? If you don't like the price, don't buy it and don't steal it either.
A lot of the digital production, ie laying out the pages, has been moving to India over the past 10 years due to price pressures from the publishers. Per page price during that time that the venders get from the publishers is about 1/3rd what it was about 10 years ago, at least for textbook publishing. What we need is a way to bring those jobs back to our shores. A higher profit margin for the publishers is not going to do that by itself, but it does make it more possible especially if it is coupled with a bit of consumer outrage over outsourcing the work to another country.
I guess my main point is that the constant downward price pressure on products that we make here has hurt our economy. It has pushed jobs overseas to be able to meet the demands of retailers like Wallmart and Amazon. In a lot of cases those jobs have not been replaced, just look at the unemployment numbers and the trade deficit and you should be able to realize that it has affected our economy, and is likely to slow the recovery since as the economy picks up there will be fewer jobs created here to meet the demand and more overseas.
Amazon is at 57 P/E.
Apple is at 19 P/E.
Craziness.
McMillan,like other publishers adopted the price structure of Amazon because at that time Amazon was the major seller of eBooks. Now Apple has told publishers they will sell books for what the publishers want to sell them at and take a 30% cut.
This scared Amazon so they got ticked off at McMillan and pulled their titles.
McMillan called their bluff.
Amazon caved.
end of story.
So...eBooks are selling fine for several years at one price, and then, for no apparent reason at all, the price increases 50% without any explanation.
Perhaps a little civil disobedience as punishment for unrestrained greed is a good thing?
And can we please stop calling it stealing? If my friend won't spend $700 for Photoshop, but then downloads a pirated copy, how exactly is Adobe harmed? They weren't going to make the sale in any case at that price. Yes, I realize my friend is unfairly enriched by getting to use Photoshop for free, but there's an easy way to curb piracy: make the product affordable. You reduce piracy, and you make up the lost revenue in greater volume.
That's what Apple did. By forcing music tracks to $0.99, Apple made them so inexpensive that many pirates didn't even bother to steal them any longer.
People and corporations have a right to protect their intellectual property, but there may be consequences to appalling greed.
But don't forget the writers. Yes, it's cheaper to distribute e material. But the writers get paid by percent. So a lower price means a lower cut.
Thomas