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War between Amazon and Hachette
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by
Janaki
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Aug 12, 2014 05:57AM

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Personally, I think it's pretty obvious that Hachette is seeking to overprice ebooks to push their margins even higher. There is no logical reason for an ebook to be priced greater than $9.99. In my opinion, even $9.99 is on the high side, especially because most publishers are giving their authors a measly 25% of the royalties.

I agree ebooks cannot be priced high, as it does not have the touch and feel of a printed book. But printed books still have value, but that's changing here in India too. Many booksellers in Bangalore have protested over Amazon and Flipkart reducing prices.
http://www.thehindu.com/news/national...


If Hachette sells a paperback for $14.99, the cost of producing the book might be $5. So that's $10 left, $3 of which goes to the bookseller, and the remaining $7 is shared between the publisher and the author (and the publisher will generally get a lot more of it).
If Hachette sells the same ebook for $14.99, the cost of producing is basically zero. $4.50 might go to the book seller, and the remaining $10.50 goes to the publisher and author (again, the publisher gets more, which is just another unfair aspect to all of this).
COnclusion: Hachette wants to overprice ebooks in order to pad their profits. In my opinion, it's very black and white.
As far as the article about booksellers, again, they're thinking about themselves and the legitimacy of their own businesses, not about what's best for readers. For readers, lower prices is better, because it means they can afford to read more books, which is better for authors too. I believe readers should be the number one priority here, and if you poll readers and ask if they'd rather pay $9.99 or $14.99, I can tell you what they'd say.


