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FIGURE 10.4 HOW A BOOK’S REVENUE IS DIVIDED

Booksellers are still dependent on printed books, but e-books are changing the nature of business expenses, profits, and costs to consumers. Here’s where the money goes on a $26 trade book and the same title sold as a $12.99 e-book.

Source: Ken Auletta, “Publish or Perish: Can the iPad Topple the Kindle, and Save the Book Business?” New Yorker, April 26, 2010, 24±31.

Note: Publishers and booksellers must pay other expenses, such as employees and office/retail space, from their revenue share.