The Economics of the Book Industry

Printed Page 47

To serve customers profitably, the book business (like other mass media industries) must bring in money while also investing in needed resources. Publishers make money by selling books through specific channels (such as brick-and-mortar stores and online stores) and by selling television and movie rights. And they spend money on essential activities such as book production, distribution, and marketing.

Amazon.com CEO Jeff Bezos presents the Kindle Fire, a color touchscreen version of its popular Kindle electronic reader. E-readers like the Kindle Fire attempt to transform books from paperbound purchases at brick-and-mortar stores to a completely online experience.