WSJ: Apple Tablet Portends Rewrite for Publishers

ebook net salesWSJ has a late running story on how business model related nuances are still getting worked out between Apple and leading publishers. Highlights of that post –

Amazon today sells that e-book for $9.99, the bookseller is losing about $4.50 on each sale—a hit Amazon has been willing to take to build a dominant market share in e-books and power sales of its Kindle reading device.

The Apple model would bring in less revenue per title for publishers and authors. Since Apple will take a 30% fee on sales, a $14.99 e-book will generate $10.49 for publishers. That publishers and authors stand to make lower revenue per book sold on the Apple model is one reason some are hesitating about signing up with the tablet.

A good chunk, at least 20% to 30% of your e-books, are sold at a loss. This could bring up gross margins closer to those on physical books

One thing is for sure, publishing industry as we know it is about to be changed forever. Apple is rewriting the rules of publishing business and along the way they will end up redefining what we mean by books.

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