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Thursday, January 7, 2010

eBook Market Analysis

Here is an interesting analysis of the fledgling eBook market and its relationship to the traditional book market. The analysis was done by TBI Research, a new market newsletter that will eventually be a subscription-only publication. I found this by way of agent Kristen Nelson's Pub Rants blog (highly recommended). Adding to the interest of the article are the comments that round out the coverage, including one by Tim O'Reilly, the publisher of the "O'Reilly zoo" software/Internet-related books found profusely in a bookstore near you.

One of the main points of the article is that Amazon is nearly alone, at present, flexing its muscles trying to bring down the cost of eBooks, while losing $2 per sale. It seems logical that eBooks should be cheaper to produce, and they are to a degree, but the degree is not as flexible as one might expect. There are many analogs between the newspaper print/online shakeouts that are happening now and the eBook/online/print book industry. It will be bloody.

One commenter mentioned that eBooks can be sold as iPhone apps. I think the iPhone app market is telling. Presently, many game and utility apps sell for $0.99. The reasoning is that people will pay 99-cents for anything on a lark, even apps that merely make rude noises...and sell 20,000 copies nearly instantly. I'm not suggesting that the book market can sell new books at that price level (and pay the authors a reasonable amount!), but part of the struggle is to find the what-the-heck level for eBooks. There is a point where print copy buyers eyes will arch at a bargain and past non-readers will say, what-the-heck.

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