Cover Story - Outlook 2010: The Future of the Industry
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This does not mean the industrywide effects of e-books are far off, however, cautions Gallagher.
For business models still built on hardcovers and large-print-run margins, "The challenge is not when e-books become the dominant [market] share, but when they gain about 4, 5 or 6 more percentage points," he says. "Then it gets to be a really sticky situation for publishers because they're basing their margins on hardcovers, which, at this point, will [still] be their primary binding type, but they'll be printing thousands less, so the per-unit price will go up."
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James Sturdivant
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