The online giant is getting into publishing, they are letting all bloggers on the Kindle but setting the terms (Amazon is taking 70 precent of revenues), and they are selling Kindle books at a loss to build up market share:
That Amazon is currently treating the bulk of Kindle editions as loss leadersitems it either breaks even on or loses on to build market share in e-book sales and to fuel the growth of the Kindleis one of the worrisome aspects of the current system. The concern among publishers is that, at some point, when Amazon sells both the bulk of the digital reading devices and the bulk of digital books, it will refuse to pay the same discount on Kindle editions, forcing publishers to a lower price for digital editions.
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