Benedict Page, reporting for The Bookseller has news from Penguin CEO John Makinson, calling the eBook the "direct descendent of the 1930's paperback". Back in 1935, Allen Lane founding the publishing company publishing paperbacks. Eventually, hardcover publishers began publishing their own paperbacks, rather than sell the rights to a paperback publishing firm.
He mentions that the relatively small cost of producing eBooks is viewed by many authors as a chance to earn higher royalties, but also cites the oft remarked upon "printing is 10% or less of the cost of publishing".
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