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" ... A baby sea star cannibalizes its sibling ... "
" ... Assume we net an $8 royalty per PDF sale (we'll get that number over $9 as we completely transition to Gumroad). A traditional casebook like ours would sell in hard copy for at least $150 and wholesale for perhaps $110. Assuming 15% royalties (although I think 10% is a more common casebook royalty rate), each hard-copy sale produces around $16 of royalties. However--and here's the kicker--due to the first sale doctrine, the used book market cannibalizes most hard-copy sales in the second and third year of a book's release. Meanwhile, because there is no market for "used" PDFs, we'll make new sales in years 2 and 3. Will we make up in subsequent years' sales what we lose from the higher initial per-copy royalty? It's hard to know for certain, but I think it will be close (if not favorable for us). ... "
" ... For older contracts, one common dispute is who owns VOD? The disputes include issues such as whether or not the producers granted distributors VOD rights in the first place and whether the distributors have licensed those rights to third parties. The answers depend on the terms of each contract and may have to be answered by litigation. Since VOD cannibalizes home video, the argument is made that VOD rights come within the definition of home video rights. In the author’s opinion, it is inappropriate to do so; it just cannot be said to be within anyone’s reasonable expectations that “home video” would include VOD before it existed. The simplest case is a future media clause, covering distribution by “all media, whether now known or hereafter devised.” Whoever owns all future media rights should certainly own VOD. However, if one person owns future media to home video rights and someone else owns future media to television rights, they may be fighting over who owns VOD in the courts. ... "
" ... Price is arguably the reason Apple missed out on much of the joy in the first round of the personal computer market. Having been given another chance, the company is not going to make the same mistake twice. And yet, the product is well differentiated and therefore cannibalizes higher up the line less. ... "