War over ebook pricing heats up – Amazon vs Publishers, Apple
March 18th, 2010 admin
GalleyCat has some riveting news and claim that the ‘Agency Four’ i.e. Simon & Schuster, Harper Collins, Penguin, and Hachette are all part of some major drama – Here’s an excerpt from the subscription-only story : “The indications are that if the Agency Four have not finalized new digital sales agreements with Amazon prior to the launch of Apple’s iPad, they could face delisting from direct sale at Amazon, as Macmillan did.” The main point of contention seems to be that Amazon …
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Amazon has a small write-up explaining their decision to let Macmillan set prices . They say that Macmillan has a monopoly over their titles and Amazon want to offer the titles to Kindle owners (even if the price isn’t right) and let them decide - Macmillan, one of the “big six” publishers, has clearly communicated to...
Motoko Rich at The New York Times has some very interesting news – Apple inserted provisions requiring publishers to discount e-book prices on best sellers — so that $12.99-to-$14.99 range was merely a ceiling; prices for some titles could be lower, even as low as Amazon’s $9.99. Essentially, Apple wants the flexibility to offer lower...
![Amazon Threatens to Dump Two Major Publishers (Read: They Just Lost the Price War) [Amazon]](http://cache.gawkerassets.com/assets/images/4/2010/03/kindlebusted.jpg "Amazon Threatens to Dump Two Major Publishers (Read: They Just Lost the Price War) [Amazon]")
Amazon is getting serious about getting its way with ebook pricing, threatening to do what they did to Macmillan (pull physical and digital books) unless publishers agree to certain demands. Among Amazon’s requirements is that publishers enter into a three-year deal so that no other distribution method (read: Apple) will be able to get lower...
Amazon has given in to Macmillan, and will switch to a pricing model that sees eBook versions of bestseller and new hardcover releases offered to customers at $12.99 to $14.99. The official statement is as follows: Dear Customers: Macmillan, one of the “big six” publishers, has clearly communicated to us that, regardless of our viewpoint,...
Books published by Macmillan mysteriously poofed from Amazon yesterday. The reason, according to the NYT , is that Amazon is punishing the publisher for arguing that the price of Kindle books should go up to $15. This won’t end well. It feels like a repeat of the same shit Universal Music , and later, NBC Universal pulled with iTunes, trying...
![Amazon Stabs Penguin in the Throat With Ebook Pricing for Real Books [Amazon]](http://cache-02.gawkerassets.com/assets/images/4/2010/04/160x120_kindle-man.jpg "Amazon Stabs Penguin in the Throat With Ebook Pricing for Real Books [Amazon]")
Amazon? Not playing around with publishers when it comes to ebook deals. Penguin’s contract ran out on April 1, so Amazon can’t sell their ebooks. So Amazon’s cut the price of Penguin’s actual hardcovers to $9.99 ebook pricing. More
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Let’s start with a brief explanation of the agency model. What is the Agency Model? Macmillan CEO John Sargent explains it thus (courtesy GalleyCat ) – Under the agency model, we will sell the digital editions of our books to consumers through our retailers. Our retailers will act as our agents and will take a 30% commission (the standard...
![The $9.99 Ebook Is Dead: Third Major Publisher Hachette Dumps on Amazon [Amazon]](http://cache.gawker.com/assets/images/4/2010/02/applepublishers.jpg "The $9.99 Ebook Is Dead: Third Major Publisher Hachette Dumps on Amazon [Amazon]")
Amazon’s ebook pricing structure has crumbled. Hachette’s the third major publisher to push for the agency model, following MacMillan and HarperCollins : They’ll set the ebook prices (higher, natch) and the bookseller takes a cut. The $9.99 ebook? Poof. It looks the pricing model reportedly first proposed by Apple to publishers—from...
The Bits Blog has an update from Motoko Rich stating that Macmillan offered Amazon one of two choices – An agency model like iPad will have – Publishers set eBook prices and get 70% of revenues. This would mean Publishers set prices for new books at $15 and get $10.50. The big win is the $15 price. A wholesale model like Kindle...
Amazon Kindle, meet your Voldemort. iPad has an ebook store and it’s called “iBooks”. Picture of the store interface after the jump. Publishers include Penguin, HarperCollins, Simon & Schuster, Macmillan, and Hachette—the big boys. [ Apple iPad ] Doesn’t look like books will be cheap, but there should be a healthy...
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