Margins.

/Margins.

So how is Amazon making the ebook business not worth pursuing [by companies like Apple and Google]? They are doing it by discounting so aggressively that the value of the book business for ebook retailers is so miniscule that it doesn’t even raise the eyebrows of the major tech companies. While the book business is big, why even bother with it if the profit margins are so small as to not even move the needle? Your time is better spent focusing on video games with in-app purchases, among many other things.

–Jake Kerr on slicing the pie.

FWIW, I don’t agree with all the conclusions Kerr makes (and also some of his assertions… would seem to need the Wikipedia [citation needed], shall we say).

Still. Thoughtful read.

2014-08-21T08:54:31+00:002nd October, 2014|Tags: amazon, ebooks|