Cader: Discounting Could Cost Amazon 65% of 2011 Profits

From Publishers Lunch (What the Settlement Might Actually Cost Amazon and Barnes & Noble):

If Amazon has a market share of 55 percent among the biggest publishers, they are entitled to lose another $113 million selling ebooks over the next year. If Barnes & Noble’s share is 27 percent, if they choose to fully compete on discounts, it would cost them only about $30.5 million. For investors concerned about Amazon’s diminishing margins–$177 million in net income for the last fiscal year–that extra discount comprises roughly 65 percent of last year’s profit.

Read more at Publishers Lunch.


Your email address will not be published. Required fields are marked *