So Amazon is paying publishers 3$ more than they make on each book, yet the best deal they are willing to offer to newspapers is 30% of their revenue?
http://www.washingtonpost.com/wp-dyn/content/article/2009/05...
http://www.washingtonpost.com/wp-dyn/content/article/2009/05...
For example, a $1 newspaper costs the paper $1.50 to print and distribute. In theory, they are supposed to make back that 50 cent loss (plus cover all their other operating expenses) on advertising.
So, for a newspaper, my options are: 1) Sell a hardcopy at a $.50 loss and make $1 in profit on advertising, netting a $.50 profit 2) Make $.30 on a Kindle sale, $.50 in advertising, netting a $.50 profit, netting $.80 profit (as of now, advertisers usually won't pay as much for electronic ads).