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pammyfay

Interesting info on e-books

15 years ago

I know that some discussions of Kindles and other e-readers and iPads and iTouches/iPhones have included questions on the prices of e-books.

This info ran in the Washington Post today, and I thought it was an interesting analysis, done by an MBA student at George Washington University. (PS: I don't own a Kindle or any other apparatus for which I'd be buying e-books. Yet.)

"WHY IT COSTS $12.99 FOR A BEST-SELLING E-BOOK"

Cost to publisher: $9.09

..author royalties: $2.27

..editing/digitizing: $0.28

..marketing: $1.00

..overhead: $3.18

..operating profit: $2.36

Cost to retailer: $3.90

..overhead: $0.50

..digital rights management: $0.10

..pre-tax operating profit: $3.30

Price to customer: $12.99

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