If you are really going to go down this path, then why not apply the same logic to the rest of the media in the iTunes store. An awful lot of music doesn't get into the store... because prices are too low? A lot of movies don't get made. A lot of TV Shows don't get made. Etc.
I have never said that I thought that music prices should be fixed. In fact, I've said the opposite. I believe that the wholesaler/retailer notion is economically inflexible with electronic distribution, and I believe that having a percentage-cut distributor instead would be better for market flexibility. Amazon want to get the economic benefits of being both a wholesaler and a retailer, which makes sense for them. Apple's entrance with a different business model for ebook selling allows us to test these models and see which does best and then work out why whichever model thrives, does. However, just because allowing flexible pricing will allow
more books to be published profitably doesn't mean
all books will be published and the same goes for music, films and TV programmes. As such, I feel the argument you have presented is a strawman.
Of course, we (and I) want "more books". There's not argument against that. Nor is there any argument against the idea that if it is unprofitable to publish a book will it be published anyway.
So let's couch it in reality. A few days ago and before, it was apparently profitable to sell an e-book via Amazon for $9.99. Today, apparently, it is now NOT profitable (per your implication anyway). Factually, it is MORE profitable to sell it at $14.99, perhaps as much as $5 more profitable if it was profitable at $9.99. Does that extra $5 mean some other borderline book(s) can get published? It could mean that. Or it could be just $5 for the publishers pocket.
No, the profitability hasn't changed. Neither has the risk. I feel, given what my publishing friends have told me and by reading up on the subject myself, that ebooks have (up to now) been a speculative project; allowing a certain extra risk to assess the market potential and opportunities for reward. What has changed is that now there is another deal that some seem to think can challenge Amazon's dominance of the market. They can, therefore, play the two models off each other to seek a better deal. At no time have I claimed otherwise.
I make no arguments against the breadth & depth of books, nor against whether borderline books should be published, etc. I am simply calling folks out who are supporting the idea that higher prices for THIS media is fine, when every other media producer wanting to set THEIR own prices too (perhaps so borderline movies, music, and TV Shows can get funded) is tagged greedy, fat cats.
Which I've never done, so please stop saying that. I'm not calling anyone greedy and your repeated assertions of this argument in the context of a discussion with me are disingenuous. It is irrelevant to the arguments I am making.
As to the rest, I'm just going to choose NOT to bother. So much of the exact same logic can apply to justifying higher prices for the rest of the media in iTunes. Do you really think the music industry couldn't make much of the very same case why THEY should get to price their music in the iTunes store as they see fit? They don't even get that option to allow market forces to find price equilibrium.
And I think that they should be allowed to set prices as they see fit. Again, I keep saying this; please acknowledge that.
Thanks for the lessons in economics of the publishing industry. I know them very well... I work very heavily in the space. Still, even thoroughly understanding the economics of the space, I stand by my same points. And knowing what I know, that $5 won't go toward getting marginal books published that otherwise won't get published. But to each his own. If you believe that it will, then by all means pay MORE for ebooks.
I do not believe that the $5 will 'go towards' anything. I believe that publishers are companies and therefore legally obligated to increase shareholder value. I believe that if they can set prices for themselves based on the costs and projected sales that low- and mid-list titles are more likely to increase shareholder value by being published. Not certain, but more likely. If they're acting like they're obligated to do so, then this will make it more likely that they will publish them.