Thursday, July 9, 2009

A different view on Amazon

From Bloomberg:

"Amazon.com, which cut the Kindle’s price yesterday, pays publishers $12 to $13 for Kindle editions of books on the New York Times best-seller list, and typically sells them for $9.99, said Paul Aiken, executive director of the Authors Guild, a New York-based group providing legal support to writers.

As it stands, Amazon.com’s $9.99 e-book price is unsustainably low for the company and publishers, said Claudio Aspesi, a Sanford C. Bernstein analyst in London, in a June 19 note. Amazon.com will probably raise the price it charges Kindle users to $12.50 and pressure publishers to sell electronic books for less so it can make a profit, he said."

Goldman Sachs, of course, begs to differ.

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