But it has across the board, not just for those publishers
adopting agency pricing.
My opinion is that they went along with this because they wanted into iBooks / iTunes and the only way to do so was to accept Steve Jobs» terms and that meant forcing Amazon, B&N and other e-book retailers to
adopt the agency pricing model.
The Random House news was expected, as the publishing company announced Monday that it would
adopt the agency pricing model for e-books.
Random House announced Monday that it will
adopt agency pricing for ebooks, leaving behind the traditional wholesale / retail model.
On Monday, February 28, ABA indicated its strong support of the decision by Random House to
adopt the agency pricing model for the publisher's e-books.
What is even more interesting (apart from that the announcement comes just hours ahead of the iPad2 official launch) is that the Random House e-books have made it to the iBookstore just 2 days after it had
adopted the Agency Pricing methodology.
The publishers noted that while they continue to sell e-books under the wholesale model, they have «benefitted significantly» — along with authors, booksellers and consumers, — from the ability of the Big Six publishers to
adopt the agency pricing model with Amazon, since those arrangements, «contributed dramatically to increased competition and diversification in the distribution of e-books.»
«The key word here is collective,» Buterman said, because no one publisher was willing to
adopt agency pricing on its own.
Frankly, I don't think this will be nearly as dangerous for Amazon or DC as the pushing publishers to
adopt the agency pricing model will be for the publishers or Apple.
Apple and the first five of the «big - six» publishers to
adopt agency pricing — all of them except Random House, I'll call them the «big five» here — are the defendants in a number of lawsuits.
Random House was not included in the DOJ's original lawsuit, because
it adopted agency pricing over a year after after the other big - six publishers did.
About a year later, Random House became the last big - six publisher to
adopt the agency pricing model.
Random House did not
adopt the agency pricing model until March of this year, and was not included in the original class - action suit, although it is listed in the New York suit filed the next day.
Hachette, HarperCollins, Simon & Schuster, Macmillan and Penguin
all adopted agency pricing in January 2010 as part of negotiations with Apple prior to the launch of the iPad.
Not exact matches
The most recent attempt started in 2010 when five major U.S. publishers — MacMillan, Hachette, Simon & Schuster, HarperCollins, and Penguin — entered into a so - called
agency pricing model with Apple, then allegedly used the Apple deal as leverage to force other retailers into
adopting the same
pricing model.
Amazon refuses to
adopt the
agency model, instead wanting to sell ebooks at a fixed maximum
price.
It's just part of that
agency -
pricing model that so many publishers have
adopted.
HarperCollins argued that since it
adopted the
agency model in 2010, «the e-book market exploded, giving consumers more choices of devices, formats and
prices that would never have existed but for the
agency model.»
News — 1) Random House belatedly joins the «Apple 5» publishers in
adopting the
Agency Model of e-book
pricing, just in time to gain a brief but prominent mention by Steve Jobs at the iPad 2 press conference on March 2, 2011.
Simon & Schuster has
adopted what is being referred to as refined
agency pricing, which will allow Amazon UK to offer significant discounts on the
price of S&S books.
This is mainly because most of the companies just got into eBooks and have temporarily
adopted the
agency model for eBooks to determine set
prices until something more official is produced.
No, I see this venture into publishing as a way to rub the noses of the legacy publishers, especially those who
adopted the
agency model of e-book
pricing, in the excrement that will soon be hitting the fan.
Defendants» conspiracy and agreement to raise and stabilize retail e-book
prices by collectively
adopting the
agency model and Apple
price tiers led to an increase in the retail
prices of newly released and bestselling e-books.
Second, and more important, Apple replaced the express requirement that each publisher
adopt the
agency model with each of its retailers with an unusual most favored nation («MFN»)
pricing provision.
«After HarperCollins
adopted the
agency model in 2010, the e-book market exploded, giving consumers more choices of devices, formats and
prices that would never have existed but for the
agency model,» the company said in a statement.
Amazon is now playing the game well with Penguin and is putting pressure on the publisher by selling the hardcovers at rock bottom $ 9.99
price, something that triggered Penguin to
adopt the
agency model.
It did so by abruptly and collectively by abandoning the long - time industry - norm of wholesale
pricing and
adopting instead what is called the
agency model, in which retailers get a percentage of any sale rather than being allowed to set the
price of goods themselves.
The MFN approach «eliminated any risk that Apple would ever have to compete on
price when selling e-books, while as a practical matter forcing the Publishers to
adopt the
agency model across the board,» the judge wrote.
Some pro-electronic publishing forums have suggested that, like cigarettes, ebooks produced by the publishers
adopting the
agency model should come with a warning along the lines of: Warning: buying this book will support a publisher who wants to increase book
prices for all.
The Defendants» purpose in
adopting the
agency model was to end competitive
pricing for ebooks, and to slow the growth of ebooks in general, and the growth of Amazon's dominant market share in particular.
The move echoes rather uncannily the words of the late Apple CEO Steve Jobs, who predicted this exact path of profit destruction for the publishers if they did not
adopt the «
agency model,» where publishers set wholesale
prices.
Jon Brodkin of Ars Technica wrote a more thorough explanation of the judge's rationale in his ruling: The central aspect was a clause in Apple's contracts with publishers that didn't allow them to sell ebooks for a cheaper
price than Apple's, forcing Amazon to raise its
prices and the publishers to
adopt a different selling model (the
agency model).
The suits do not allege that
agency pricing itself is illegal; rather, they allege that the big - five and Apple illegally conspired to
adopt the model all at once in order to retaliate against Amazon's discounting.
Under the traditional wholesale model, which is used for print books and was used for e-books as well until publishers
adopted the
agency model in 2010, publishers set a book's suggested retail
price and retailers can discount the books to any
price that they want.
Under the traditional wholesale model, which is used for print books and was used for e-books as well until publishers
adopted the
agency model in 2010, publishers set a bookâ $ ™ s retail
price and retailers can discount the books to any
price that they want.»
-- Random House, which was the last «big 6» publisher to
adopt the
agency model for e-book
pricing (in February 2011) is not listed as a defendant.