The Internet makes possible the instantaneous transmission and retrieval of digital text. It is widely assumed that this capacity will lead to the displacement of printed books by digitized books that are read mainly on computer screens or handheld electronic devices. But it is more likely, I believe, that most digital files includes even those books that, under traditional publishing assumptions, would have been designated “out of print.”
Also, the digital publication of a book online involves no physical inventory, thereby eliminating the costs of warehousing, shipping books to wholesalers and to retail stores, displaying physical books in retail stores, and returning unsold books to publishers. This would make digital publishing much less expensive than traditional publishing. Given the economic digitized books becomes large enough to justify investment in book printing machines at numerous regional sites.
Moreover, the elimination of whole categories of expense means that under the digital publishing model, authors would be responsible for a greater proportion of the value of the final product and would therefore, according to literary agents, be entitled to a larger share of the proceeds. Currently a large percentage of publishers’ and may help explain the caution with which today’s publishing conglomerates are approaching the digital future.
What this question is testing
Anticipate
This is a Main Point question. Step back and ask what the passage is really arguing across all three paragraphs.
P1 sets up a different vision of digital publishing (print on demand). P2 explains the cost savings. P3 — the longest paragraph — works out how those savings translate into higher royalties for authors via competitive pressure from upstart digital firms. So the main argument runs through all three paragraphs, and the destination is the author-royalty point.
Goal
Look for an answer that captures both halves: economic transformation + greater share for authors. Common traps:
Answers that only describe the digital-vs-traditional shift without the royalty consequence
Answers that focus on print-on-demand vs. screen reading — that's P1 only
Answers that frame the passage as about economic transitions in general
Reading along? Open the full official question in LawHub — we show a fragment here and keep the reasoning in our own words.