The advent of online publishing has put special demands on both publishers and libraries. There appear to be some misconceptions about the source and treatment of funds for such capital investment. It is often assumed that online publication costs are less expensive than print because the cost of manufacture and distribution is eliminated. All costs in any business are financed out of sales revenues.
Capital expenditure is no different.
The equipment is purchased, and then is written off, or depreciated, against profit over a period of years, in accordance with the organisation's accounting policy. In the case of computer equipment, the period for depreciation is typically two or three years. This is just as much a cost as staff salaries, property rental or editorial costs. Capital expenditure does reduce profit and, consequently, shareholders' dividends. They expect a return on that investment, generated from enhanced profits in the future.