Kindle E PublishingChildle E Publisher
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Editors are afraid that Amazon will be cutting their Kindle e-book margin.
Publishing houses are worried that Amazon (AMZN) could compel them to lower Kindle e-book rates, Bloomberg states. Currently, Amazon Kindle is selling books without any losses at the cost of e-readers - now $299 - making it easy for the consumer to use. Amazons will pay publishers $12 to $13 for the New York Times bestseller digitals it is selling for $9.99, according to Paul Aiken, managing directors of the Writers Guild, about Bloomberg.
Meanwhile, editors are making a precipitous margins on e-books: $2.15 per volume, according to Bernstein -- eight times the 26 cents they are getting for a printed copy. But, if one day Amazon wants to be selling Kindle products at a gain -- the whole point of getting into the shop -- it has two options:
Increase the price of e-books in retailing or force publishing houses to resell e-books at lower wholesaling rates. Meanwhile, editors are hoping that new gamers like PlasticLogic, FirstPaper, ScrollMotion and Google's e-publishing services could help turn the tide. However, so far Amazon has had an early trace. "Overall, the sector is a little jumpy about the Kindle and the chance that Amazon will really shut down the e-book market," said Paul Aiken, CEO of Author Guild, Bloomberg.