It's always enlightening to compare what companies say to investors versus what they say to customers, regulators or the media. Big book publishers have whined that they don't actually save any money by selling electronic versions of books compared to paper versions. It's malarky, often backed with tricky three-card monty accounting explanations. But here's the head of Simon & Schuster speaking to investors:
“We got out of the gate faster than usual,” said S&S CEO Carolyn Reidy led by sales of e-books that doubled in the quarter and accounted for 17% of revenue with digital audio adding the other one percent (about $28 million). The steep increase in profits was attributed to lower shipping, production and returns costs as well as the “painful” belt-tightening that S&S has implemented over the last 18 months plus the higher sales, Reidy said.
-Brad's Reader blog, May 5, 2011 (via Paul Biba at Teleread)