What Should Publishers Do about eBooks
Barnes & Noble announced a competitor to Amazon’s Kindle. One of the most remarkable differences is that the eBooks bought from BN.com will be readable on multiple devices (not the Kindle, currently, but I’d strongly consider it, if I were Amazon).
But it made me think about publisher’s concerns about the impact of selling eBooks in lowering their margins (the de facto pricing of eBooks is about $9.99, akin to paperback pricing).
I don’t see this as a margin killer business. I see it as a net additional revenue stream and higher dollar volume business.
Think about what the Kindle and other moble devices do…they make it more convenient to do things. Many moble users will actually read more because it’s convenient or easier to search for, acquire and read content. This isn’t a lower margin issue. It’s a “how can sell more content, while remaining profitable” issue”. I’d look at music sold through Rhapsody and iTunes for an idea on how this could work.
If I were a book publisher, I’d go into this eyes wide open, but I’d still go it.
