Ebook economics…
September 17th, 2015What’s the optimum price for an ebook? Depends on whether you’re a reader or a writer, of course. For readers, the optimum isn’t $0! You might think it is, but it isn’t. Writers are going to stop writing if you expect them to give away their ebooks. Sure, you might find an ebook in promo for $0, and, given the number of ebooks available at that price, you might read for a lifetime without paying for any ebooks. But there are authors you might be missing (I’m one of them) if you’re waiting for their ebook to be $0. And no author is going to give ALL his ebooks away for nothing. Even indies have costs they have to cover.
Promos ($0 or reduced prices) are often only for first books in a series too, no matter the price, so, if you finish that $0 ebook and want to read the next one in the series, you’ll be paying more than $0. Moreover, the meaning of series is changing. I don’t condone this, but authors are writing series now that are really one big story arc—individual ebooks in such a series don’t stand alone; they’re not complete stories, and to complete them the reader has to fork up money to continue. (Yesterday, I reviewed such a book.) If I’m in that situation as a reader, no matter the cost of the first installment, I won’t continue, but many readers will want to do so, and they’ll pay for it.
In a stable economic system (ebook publishing might not qualify as stable, of course), there’s a tug-of-war between producers (authors, in this case) and consumers (readers, in this case). This settles down to some stability point where the consumer is willing to pay what is needed for the producer to keep producing. Unless that stability point is found, one side or the other is going to remain dissatisfied.
The traditional publishers’ agency model isn’t stable in that sense. Many avid readers (my definition of avid reader is one that reads at least one book every two weeks, on the average) won’t pay traditional publishing’s ebook prices, especially when they see hardbounds and trade paperbacks at $14.99 and the corresponding ebook at $12.99, for example. Everyone knows it costs less to produce an ebook—the price should reflect that. Moreover, because most indie ebooks are $2.99 to $4.99, the reader will often prefer foregoing the traditionally published ebook and buy three or four indies. In addition, those traditionally published authors are often formulaic old stallions who should be sent to the glue factory—the smart reader knows he can find new and exciting entertainment at a better price.
