To use a metaphor that connects with the current news: this is a very major earthquake. This one won’t cause a tsunami and a nuclear meltdown, but you better believe it will lead everybody living near a reactor — everybody working in a major publishing house — to do a whole new round of risk-assessment. Because, in its way, this is more threatening than the earthquake that just hit Japan.It's from the first link.
Barry: This is a critical point. There’s a huge data set proving that digital books are a price-sensitive market, and that maximum revenues are achieved at a price point between $.99 and $4.99. So the question is: why aren’t publishers pricing digital books to maximize digital profits?posted by lodurr at 11:37 AM on March 22, 2011 [1 favorite]
Joe: Because they're protecting their paper sales.
Barry: Exactly.
Joe: It's awfully dangerous for an industry to ignore (or even blatantly antagonize) their customers in order to protect self-interest.
Barry: Not that it hasn’t been tried before. Just never successfully outside a monopoly. And the advent of digital has broken the monopoly publishers used to have on distribution.
Joe: In the meantime, I'm selling 3000 ebooks a day by pricing reasonably. There aren't too many Big 6 authors selling that well. And I'm getting much better royalties than they are.
So what’s going on with legacy publishers? It seems like either willful ignorance or outright stupidity. They're irritating their customers, alienating their content providers, and refusing to embrace the future.
Why?
Barry: I think there are a lot of things going on, some emotional, some institutional. Clayton Christensen wrote about a lot of this in a book called The Innovator’s Dilemma. Fundamentally, it’s extremely hard for an industry to start cannibalizing current profits for future gains. So the music companies, for example, failed to create an online digital store, instead fighting digital with lawsuits, until Apple--a computer company!--became the world’s biggest music retailer.
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Wow, that's just....I don't even know the adjective.
posted by spicynuts at 10:41 AM on March 22, 2011