This may be old news, but I didn't realize that (at least some) books on the Kindle are subsidized by Amazon. I expected it to be the other way around, since it's so hard for people to look past the $300+ purchase price. I wonder what fraction of Kindle sales are for bestsellers versus the long tail (for which Amazon probably pays less and makes a profit)? Also, in light of the fact at the beginning of the article that Kindle sales are more profitable than print, it sounds like there's a lot of room to squeeze publishers before this analyst's predicted price increase. - Ben Darnell