Mark Coker continues to be one of the smartest and most insightful thinkers on ebooks, what they mean and where they are going. His predictions post for 2014 is interesting but this point in particular strikes me as very relevant:
Ebook growth slows – Here comes the hangover. After a decade of exponential growth in ebooks with indies partying like it was 1999, growth is slowing. We all knew this day was coming. Year over year growth of 100% to 300% a year could not continue forever. The hazard of fast-growing market is that it can mask flaws in business models. It can cause players to misinterpret their success, and the assumptions upon which they credit their success. It can cause successful players to draw false correlations between cause and effect. Who are these players? I’m talking about authors, publishers, retailers, distributors and service providers – all of us. It’s easy to succeed when everything’s growing. It’s when things slow-down that your mettle is tested. The market is slowing. A normal cyclical shakeout is coming. Rather than fear the shakeout, embrace it. Let it spur you on to become a better, more competitive player in 2014. Players who survive shakeouts usually come out stronger the other end.
via Smashwords: 2014 Book Publishing Industry Predictions – Price Drops to Impact Competitive Dynamics.