Monday, March 01, 2010

The Market for E-Books

Be prepared to have the traditional publishers make the claim that it is really not that less expensive to produce an E-Book as opposed to producing a hard bound. Be prepared but don't believe the claims. This chart is from the NYT and tries to make the suggestion that the cost structures between regular and E-books are similar. One need only look at the economics of inventory to understand the folly of the notion.

In every market that has moved from traditional atoms to bits, the cost structures have changed. But so have the reward structures. That will happen too in this market. It is beginning and will accelerate as new capabilities come to market. Just be prepared.

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