« on: January 25, 2015, 12:27:14 AM »
Trying to sell digital editions which cost much less to distribute but asking the same or even a higher price is a sure way to go out of business. IMHO, they should have a plan to convert the public to digital media by offering it at low prices, while phasing out the print side. The accountant types who run many such industries just can't seem to understand or cope with what's happening.
May cost less to distribute but that's a small part of the cost of creating the content. You still need writers, executives, editors, accountants, project managers, computer programmers, computer administration, computer operations, computer security specialists, admin assistants, facilities managers, janitors, maintenance people, security guards, HR people, WEB developers, graphic designers, and more.
Running office buildings and computer centers is not cheap either, security efforts and costs are constantly on the rise. All the employees want to be kept safe at work which means keeping offices secure 24x7. Protecting online content so those consuming it actually pay for it and other suppliers aren't redistributing it without compensation or credit. Most people would not drive into a gas station fill up and drive off without paying. But for some reason downloading content or sharing online accounts isn't a problem for many.
Investors have come to expect 20% returns from their investments. For some reason they don't expect the same from the likes of Amazon. If they ever start, what's going to happen to Amazon?
Consumers want everything for free or cheap(er). Who do they think is going to keep producing the stuff they consume? If you don't pay for what you use eventually no one will be left producing it. Push the deflationary cycle far enough and there will be too few people willing/able to pay for your product/service and you end up out of a job too.