Hal O'Brien

Why is it the retailers like Amazon and B&N coming out with Kindles and Nooks? Why isn't it the publishers?

As I understand it, the standard splits in publishing for the longest time have been 50% for the retailer, 40% for the publisher, 10% for the writer (of which 10% goes to their agent, so really 9% for the writer, 1% for the agent).

If you're a retailer who brings out an e-reader, that means you still have to deal with publishers, so the percentages shouldn't really change -- even if Amazon then charges only USD$9.99 for a "hardback" that's $24.99 in a cloth edition.

But if you're a publisher who brings out an e-reader, with a Kindle/iTunes-like "store" of your titles, that means you can cut the retailer out entirely. 90% of $9.99 turns out to still be less than 40% of $24.99 -- but not by much, it gives you lock-in over time, and it beats 40% of $9.99 all hollow.

Or, the nuclear option in the other direction: What if Amazon and B&N are thinking about becoming publishers themselves (and not just of public domain works a la Dover the way B&N has done for a while now)?

It seems to me one level of this ecosystem is about to become superfluous. Who? Am I missing something?

Edited to add: Urban myths don't constitute an explanation. Bertelsmann's sales alone annualize out at just shy of $21 billion, larger than either Amazon or B&N. Book sales have been holding steady since 2007 according not only to Bertelsmann's, Amazon's, and B&N's annual reports (and inside sources in publishing), but according to the US Census Bureau, who show only a 1.5% drop 2007-01 through 2009-10, annualized out. The broader economy has been having trouble during that time, as you may have heard. Here's Amazon's 2008 annual report; here's Barnes & Noble's. Unsurprisingly, the majority of their revenue does come from book sales.

Have some used book stores closed over that time? Yes. Have a great many dealers, including new ones, gone to ABEBooks, Alibris, etc. over the same time? Yes, again. While bricks and mortar stores may have decreased in number, I would be completely unsurprised if the total number of book dealers has increased. (If reputable numbers can be found, I'd welcome them.)

"In literature as in love, we are astonished at what is chosen by others." -- Andre Maurois

*^*^*

...and, having seen many an HGTV program, that goes double for living place and design.

So.

I recently started reading Wittgenstein's Poker, by David Edmonds and John Eidinow.

And I was flipping through the new Seattle Weekly yesterday... When I saw that Mr. Edmonds is making an appearance at the UW... today.

This is Seattle, damnit. We take reading seriously. The author of the book you're reading will be along any moment now... :)