I’ve had this sitting in my “to write” queue, and realized that I don’t actually need to write anything. I just hope that somebody succeeds in this space.
In a nutshell, there is a huge, inelastic demand for college texts, even though textbook prices are high. Because of this there is a lot of piracy and a robust secondary market for textbooks — but not for long, because they are updated every couple of years, rendering old editions virtually worthless.
Flat World’s business plan aims to exploit the inefficiencies: Its books are online and free. Instead of charging for content it aims to make money by wrapping content up in “convenient” downloadable and print wrappers and selling those, along with study aides and related items.