Following the April 1 Business Insider report that implied Amazon was losing patience with HarperCollins in negotiating a new sales agreement, Publishers Lunch has learned that Harper is preparing to return to full
agency for ebook sales next week.
Not exact matches
Hachette argued that the landscape
for e-book
sales had changed positively since the adoption of the
agency model in 2010, writing, «Two years ago, Amazon effectively had a monopoly on the
sale of
eBooks and eReaders, and was selling products below cost in an effort to exclude competitors.
While Amazon originally worked under the wholesale model, which afforded the retailer the opportunity to sell
ebooks at less than their cost in order to push
sales of their Kindle e-readers, the alleged collusion between Apple and five of the Big Six publishers actually refers to their switch to an
agency pricing model, which allowed publishers to set the price of the
ebooks for the retailers.
The tech magnate obviously doesn't think so, and has fired back in court briefs about the abusive requests the DOJ is making, requests which include steps that prevent Apple from working in the
agency model — one of the major sources of these allegations in the first place —
for five years rather than the proposed two, as well as insisting that Apple allow retailers like Amazon and Barnes and Noble to sell
ebooks through their iOS - capable apps and receive a commission on those
sales like an affiliate would.
Under the
agency model — one of the factors that led the investigators to believe that anti-trust violations had taken place between Apple and five of the Big Six publishers, including HarperCollins — publishers get to set the price of
ebooks, rather than retailers; under the previous wholesale model, retailers could purchase books directly from the publishers, then turn around and sell those titles
for any amount, even taking a loss on the books in order to boost
sales of other products.
Part of the problem in
sales for the BPHs is that they think
agency pricing
for eBooks is a really good idea.
When an
agency model publisher fixes a low price
for a backlist title like these, the publishing is putting itself in a position to learn a great deal about pricing,
sales, and profitability in the
ebook world.
I gave them our proposal
for new terms of
sale for ebooks under the
agency model which will become effective in early March.
-LSB-...] Amy Collins is the president of New Shelves Books, one of the best - known book
sales and marketing
agencies in the U.S..
For a free
ebook copy of her book The Write Way, visit http://www.newshelves.com/store/ -LSB-...]
There is some protection
for ebook prices under
agency agreements, however: «The aggregate value of the price discounts or promotions offered by any retailer should not exceed the aggregate amount equal to the total commissions the publisher pays to that retailer over a 12 - month period in connection with the
sale of its
ebooks to consumers.»
BN.com comparable
sales reflect the actual selling price
for eBooks sold under the
agency model rather than solely the commission received.
The shift to
agency pricing (in some cases, publishers have priced their
ebooks higher than the price Amazon charges
for the print versions); the rise in
sales of indie - authored, low - priced
ebooks; device fatigue and a slow renewals cycle; a lack of good competition to Amazon; adoption rates decreasing; reading time diminishing; and output reaching saturation point.
Publishers are more interested in managing a
sales mix of print and
ebooks than Amazon, and that could lead to a natural slowdown in growth of
ebook sales for those publishers in
agency pricing.»
The complaint says that the publishers named as defendants «almost simultaneously announced that they were switching from a wholesale pricing model to an
Agency model
for eBook sales» in January 2010 and «the announcements to shift to the
Agency model coincided with the release by Apple of the iPad tablet computer.
If so, the picture presented in this report might be even more dire
for the publishers who are back using
agency pricing if their results were not being buoyed up somewhat by Random / Penguin's
ebook sales.
There was nothing illegal per se about the contracts the publishers had with Amazon or that the publishers were able to set the retail price under those contracts (Apple was doing business under an
agency model
for years before they got into
ebooks and continues to
for its app and music
sales).
His explanation
for the rise in US trade print
sales in 2015 and 2016 is that in 2015 the large trade publishers»
agency contracts eliminated retailer discounting of
ebooks prompting Amazon, in mid-2015, to increase its discounts on their print books, instead.
However, there's some consolation
for the Big Five in their bank balances
for ebooks as they raised prices massively during the year in a return to
agency pricing so although
sales fell, receipts rose.