Comment Re:Time to become a better shopper (Score 1) 211
When you buy a Hatchette book for $10 on Amazon:
Amazon gets $3.00.
Hatchette gets $5.25.
The author gets $1.75.
When you buy an e-book from Hatchette on Amazon for $10:
Amazon gets $3.00.
Hatchette gets $5.25.
The author gets $1.50.
When you buy a self-published title on Amazon for $10:
Amazon gets $7.00
The author gets $3.00.
Hatchette gets 52.5% of revenue from the work authors do.
E-books, which have no cost of production or distribution net Hachette 52.5% of the author's work.
Hatchette, along with the other big five publishers have posted record profits over the last few years.
If you understand revenue vs. profit: Hatchette is operating at the SAME net profit that Amazon is, ~$260m. Hatchette makes as much net profit as Amazon does, for doing a fraction of the business.
I can't go so far as to say that Amazon is trying to help authors with their demand for lower prices from Hatchette, but I *can* definitively say that I have zero sympathy for Hatchette. Whether Hatchette can reasonably be expected to cut into their absurdly record-setting profit levels by giving up a point or two of margin to keep Amazon as a supplier remains to be seen via these unresolved contract disputes.