When Amazon first came on the scene, it was selling new books at a tiny profit
margin over the publisher's price or even at a loss to get folks interested in its Kindle readers — which the publishers weren't happy about at all.
Not exact matches
As for small
publishers, however, their
margins are already so slender that they consider your self - pubbed book «
over with.»
Publishers are no longer compelled to pack tiny text onto pages with thin
margins to save thirty pages per book
over a print run of thousands.
According to IBISWorld industry analyst Claudia Burgio - Ficca, the newspaper
publishers are likely to respond to the changes scenario by rationalizing «distribution networks, cut newsagent
margins and ramp up digital offerings
over the next five years.»
Over the past 10 years, publishing has evolved into a very profitable business with the 5 biggest
publishers reporting a profit
margin of 10 %.
No matter how a
publisher tries to gloss
over the figures, there are huge profit
margins in the sale of each e-book.
Now there's a bigger
margin left
over for Amazon to keep part of (to cover the loss on the sale of the device), share some with the
publisher / author and even pay Sprint.