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ebooks vs trad publishing

Ooh! Shiny! New thought about ebook distribution, comparing it not to books, which have high fixed costs and substantial, non-reducible per-unit costs, but to radio--which has high fixed costs, and almost nonexistent marginal costs. Sound familiar? I don't think I'd ever thought of ebook subscription services like this--not as comparable to a book club, but like public television or radio, where a few paying customers were happily supporting the entertainment of a lot more free users.

The Public Broadcasting model for ebooks, by Eric Hellman

New York Public Radio, which produces Radiolab, produces other award winning programs and operates three of America top public radio stations, all on an annual budget of just under 48 million dollars. That works out to $130,854 per day. If you spread that expense over the 19 million potential listeners in the New Yourk Metropolitan area, it works out to 0.69 pennies per day per person.

But it doesn’t even cost that much to listen to WNYC or WQXR. Most people pay even less, zero pennies, to be exact. ... A relatively small number of us send money to become “members” of the station. The $120 my family contributed turned into a deduction on the tax return I completed yesterday. Most people who listen don’t contribute, but they’re never referred to as “pirates” or “thieves”.

The reason this works anyway is that radio has large fixed costs and infinitesimal marginal costs.

Emphasis added, 'cos I had to. THERE ARE ALL THOSE PEOPLE, getting FREE COPIES of COPYRIGHTED MATERIAL piped into their homes! We're teaching our kids to be damned thieves and pirates, watching Sesame Street and not paying for it!