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A Technical Look at D&D Insider Applications

Nifft

Penguin Herder
Scott_Rouse said:
Not so easy if you are trying to run a business who's primary function is to sells books that have an average MSRP of $25.

Using your plan let's say hypothetically that WOTC sells 1 physical book a month with an MSRP of $30. That is $360 a year in annual releases that you hope consumers will buy. The plan you propose offers consumers those same books electronically at 1/3 their cost (plus added game play tools and two magazines) for $120 a year. Not a good business model if you ask me.
Why is MSRP relevant to WotC's profit margins?

If you make $9 distributing something electronically (consumer pays $10) or $9 distributing something in print (consumer pays $25), what's the difference to you? Sure, the truck driver, FLGS owner, amazon.com stockholder, printing guy and papermill may be upset, but that's not really your problem, is it?

(Note that I'm not taking up either side in particular. Just pointing out that retail price isn't necessarily related to what WotC gets to keep.)

Cheers, -- N
 

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hong

WotC's bitch
Nifft said:
Why is MSRP relevant to WotC's profit margins?

If you make $9 distributing something electronically (consumer pays $10) or $9 distributing something in print (consumer pays $25), what's the difference to you? Sure, the truck driver, FLGS owner, amazon.com stockholder, printing guy and papermill may be upset, but that's not really your problem, is it?

Yes it is. Business partners are also stakeholders.
 

Michael Morris

First Post
Nifft said:
Why is MSRP relevant to WotC's profit margins?

If you make $9 distributing something electronically (consumer pays $10) or $9 distributing something in print (consumer pays $25), what's the difference to you? Sure, the truck driver, FLGS owner, amazon.com stockholder, printing guy and papermill may be upset, but that's not really your problem, is it?

It is when they refuse to stock the product.
 

Kraydak

First Post
Scott_Rouse said:
Not so easy if you are trying to run a business who's primary function is to sells books that have an average MSRP of $25.

Using your plan let's say hypothetically that WOTC sells 1 physical book a month with an MSRP of $30. That is $360 a year in annual releases that you hope consumers will buy. The plan you propose offers consumers those same books electronically at 1/3 their cost (plus added game play tools and two magazines) for $120 a year. Not a good business model if you ask me.

WotC might *offer* 1 physical book a month with a MSRP of $30. WotC certainly doesn't *sell* 1 physical book/month/customer. I don't know how much of the $30 WotC recieves, but cutting out the middlemen will drop the equality down to 1book/1 or 2 months, I imagine. Add in the physical books bought in addition to the library access (most people dramatically prefer reading a book than a computer screen) and and additional DI access purchased by people pulled in by the library and I'm guessing you see a better business model to begin with. Add in the advantage of an easier business model which is (regardless of how jusitifed you it to be) less grating on the cusomers and I see it as a win-win.
 

Kraydak

First Post
Nifft said:
Baen previously offered "random packs" of e-books for a monthly price. (I put "random packs" in quotes because they weren't random, I just only knew about 1/4 of the authors, so it felt random.) You'd buy a digital set of 4 books at a time for a fairly low price. The books were mostly new, and the format was not encumbered -- HTML and PDFs.

You should definitely see what their experience was.

Cheers, -- N

Baen has a free library (oldish books).
Baen also has "websriptions" where they bundle that months set of books (and sometimes earlier books to round out the set to a minimum of 4, might be minimum of 5 now) and pre-publish them in thirds ($15/month these days). With the dribbling... its diabolical. Looking it up, individual books are $4-6 (still well less than a paperback) and unless Eric Flint got chased out, there won't be any DRM loading the files down.

As WotC has a much more erratic publishing schedule, I think they'd be better served with an online journal format (you can also talk to scientific publishers.... :p ) where you can buy individual books (dead tree/PDF) and/or rent access to the entire library.
 

Nifft

Penguin Herder
Kraydak said:
Baen also has "websriptions" where they bundle that months set of books (and sometimes earlier books to round out the set to a minimum of 4, might be minimum of 5 now)
Right. Thanks! That's the one I mean.

I recall back when they started you could pick your months and get a 4-5 book bundle for the price of one book.

Anyway, yeah. They've been doing electronic distribution of unencumbered content for quite a while (4 laptops ago in Nifft's time units). I suspect they'll have very interesting numbers for piracy which -- if they share them -- could be useful for deciding what kind of protection WotC might need.

Cheers, -- N
 


I'm A Banana

Potassium-Rich
I think it's important to emphasize that, as long as the "online library" is fairly cheap, it shouldn't cannibalize book sales too much. Actually reading books is almost always preferable to reading something on a computer screen, and the nature of D&D as a game means that looking things up at the table (away from computers) will always be worth the price of purchase. Rather, the online library serves as something like free advertising. :) People who have cheap-as-free e-versions of a product (such as mp3's of a CD) are usually more likely to spend money on a "solid" version (such as the actual CD). I can only see this being MORE true about books.

Though I think that WotC deserves layers of kudos for even offering free & easy online access to the books you buy. The company is definitely ahead of the e-curve with respect to most publishers (though it seems Baen might be ahead of them!).
 

ColonelHardisson

What? Me Worry?
Hussar said:
Just a note about the Baen books. Something to not forget here is most of the books they are offering are NOT new. Occasionally they are, but, the vast majority are from the 90's. There is a significant difference.

True, but the CDs that are bound in the books contain the book they are bound in.
 

Imperialus

Explorer
Scott_Rouse said:
Interesting. I will look a what they are doing.

Here is a portion of an essay by Eric Flint discussing the library.
The full essay can be read here

One other point that hasn't been brought up though is that the cost for a paperback version of most the books available from the library is under 10 dollars. The average cost for a D&D book is over 30. The files themselves are also manuscript style HTML files. No formatting or anything like that apart from chapter headers. That's fine for a novel. It would be a bit more of a pain for a D&D book. I don't think it's really possible for WoTC to adopt a similar strategy.

Baen Books is now making available — for free — a number of its titles in electronic format. We're calling it the Baen Free Library. Anyone who wishes can read these titles online — no conditions, no strings attached. (Later we may ask for an extremely simple, name & email only, registration. ) Or, if you prefer, you can download the books in one of several formats. Again, with no conditions or strings attached. (URLs to sites which offer the readers for these format are also listed. )

Why are we doing this? Well, for two reasons.

The first is what you might call a "matter of principle." This all started as a byproduct of an online "virtual brawl" I got into with a number of people, some of them professional SF authors, over the issue of online piracy of copyrighted works and what to do about it.

There was a school of thought, which seemed to be picking up steam, that the way to handle the problem was with handcuffs and brass knucks. Enforcement! Regulation! New regulations! Tighter regulations! All out for the campaign against piracy! No quarter! Build more prisons! Harsher sentences!

Alles in ordnung!

I, ah, disagreed. Rather vociferously and belligerently, in fact. And I can be a vociferous and belligerent fellow. My own opinion, summarized briefly, is as follows:

1. Online piracy — while it is definitely illegal and immoral — is, as a practical problem, nothing more than (at most) a nuisance. We're talking brats stealing chewing gum, here, not the Barbary Pirates.

2. Losses any author suffers from piracy are almost certainly offset by the additional publicity which, in practice, any kind of free copies of a book usually engender. Whatever the moral difference, which certainly exists, the practical effect of online piracy is no different from that of any existing method by which readers may obtain books for free or at reduced cost: public libraries, friends borrowing and loaning each other books, used book stores, promotional copies, etc.

3. Any cure which relies on tighter regulation of the market — especially the kind of extreme measures being advocated by some people — is far worse than the disease. As a widespread phenomenon rather than a nuisance, piracy occurs when artificial restrictions in the market jack up prices beyond what people think are reasonable. The "regulation-enforcement-more regulation" strategy is a bottomless pit which continually recreates (on a larger scale) the problem it supposedly solves. And that commercial effect is often compounded by the more general damage done to social and political freedom.

In the course of this debate, I mentioned it to my publisher Jim Baen. He more or less virtually snorted and expressed the opinion that if one of his authors — how about you, Eric? — were willing to put up a book for free online that the resulting publicity would more than offset any losses the author might suffer.

The minute he made the proposal, I realized he was right. After all, Dave Weber's On Basilisk Station has been available for free as a "loss leader" for Baen's for-pay experiment "Webscriptions" for months now. And — hey, whaddaya know? — over that time it's become Baen's most popular backlist title in paper!

And so I volunteered my first novel, Mother of Demons, to prove the case. And the next day Mother of Demons went up online, offered to the public for free.

Sure enough, within a day, I received at least half a dozen messages (some posted in public forums, others by private email) from people who told me that, based on hearing about the episode and checking out Mother of Demons, they either had or intended to buy the book. In one or two cases, this was a "gesture of solidarity. "But in most instances, it was because people preferred to read something they liked in a print version and weren't worried about the small cost — once they saw, through sampling it online, that it was a novel they enjoyed. (Mother of Demons is a $5.99 paperback, available in most bookstores. Yes, that a plug. )
 
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