Rex Hammock on the enigmatic book industry
July 14, 2009 | 8:45 am
By Paul Biba
Thanks to Aaron Pressman for letting me know about his article from Rex Hammock’s blog. Go over to see the math:
I’m trying my best, but I can’t comprehend why book publishers should care what the gross revenue of a title distributed via eBook format is if the publisher and author still receive net revenues (after costs of goods sold) equal to or greater than what they receive for the hardback format. But, according to this article in the Wall Street Journal, there are book publishers who are pushing back on the notion of releasing an eBook version of a new book for a price any less than the retail price of the same book’s hardback version.
Rather than me argue against such logic, here’s a link to a column called “The Kindle — Igniting the Book Business” by Harvard Professors Bharat Anand and Peter Olson — yes that Peter Olson, the former chairman and CEO of Random House, the world’s largest trade book publisher.
According to Anand and Olson:
“Prices of e-books should be shaped by cost structures and customer demand rather than by comparison to traditional paper book pricing.”


I’m trying my best, but I can’t comprehend why book publishers should care what the gross revenue of a title distributed via eBook format is if the publisher and author still receive net revenues (after costs of goods sold) equal to or greater than what they receive for the hardback format. But, according to this article in the 
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