Math of Publishing Meets the E-Book

By MOTOKO RICH
March 1, 2010

In the emerging world of e-books, many consumers assume it is only 
logical that publishers are saving vast amounts by not having to 
print or distribute paper books, leaving room to pass along those 
savings to their customers.

Publishers largely agree, which is why in negotiations with Apple, 
five of the six largest publishers of trade books have said they 
would price most digital editions of new fiction and nonfiction books 
from $12.99 to $14.99 on the forthcoming iPad tablet - significantly 
lower than the average $26 price for a hardcover book.

But publishers also say consumers exaggerate the savings and have 
developed unrealistic expectations about how low the prices of 
e-books can go. Yes, they say, printing costs may vanish, but a raft 
of expenses that apply to all books, like overhead, marketing and 
royalties, are still in effect.

All of which raises the question: Just how much does it actually cost 
to produce a printed book versus a digital one?

...

http://www.nytimes.com/2010/03/01/business/media/01ebooks.html

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