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November 16th, 2011, 00:40
Originally Posted by Falchor View Post
Yes, to see the whole story you have to see what the "margins" are for selling digital vs. hard-copy. Taking the middle men out of the picture (and all the costs related to distribution), the margins have to be very, very good in comparison.
While I generally agree, I would like to point out that more often than not the middleman is not cut out. The DL provider is the new middleman. But the costs for replication and distribution are indeed close to zero now, and I doubt DL services have as much negotiation power as the 10 biggest retailers worldwide. So the margins are certainly much higher, the costs much lower and the risk (returns, upfront costs, unsold inventory) lower.
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