In the wake of BEA there have been a series of articles on the coming (or rather ongoing) e-book wave. This morning’s Publishers Lunch details the strong sales of Kindles and Sony Readers, the Times assesses e-books and bookseller unease, and synching all this together with some analysis is Paul Krugman, who wonders whether authors of the future will find that “the ancillary market is the market.”
In other words, because of the ease of transmission of electronic media there is constant downward pressure on prices, which cuts into industry (and author) profits, and just as mp3s have forced bands to turn to merchandise and shows in order to make money, could it be that authors of the future will earn money from website ad revenue, appearances, and…. um, something?
We’ve discussed the implication of the proliferation of titles in the future, but what about downward pressure on prices and shrinking profits?
So after you take a look at Krugman’s article, what do you think? Is this the future? And how do we all feel about it?