Well, today I see a pair of articles analyzing the dip in Q2 e-book sales and attributing it to: post-Xmas buying and
agency model pricing, and that indie author retailers like Smashwords weren't being included in the data.
Sorry, but for the major publishers — you know, those publishers who are being sued by the Department of Justice for price fixing and others who have followed in their footsteps and have implemented
agency model pricing — they don't want to sell the e-book.
So the lay of the land has shifted dramatically post the DOJ bringing the suit against the Big 6 over
their Agency model pricing.
It's great to see someone contest
the Agency Model pricing on legal grounds.
We don't think the LaLa - land location is any accident, so we're expecting that the event will include some real Hollywood star power, perhaps in support of original video content that might be free to Amazon Prime customers for viewing on the Kindle Fire and other devices — say, an original docudrama series based loosely on
the agency model pricing conspiracy, directed by Steven Spielberg and starring Tommy Lee Jones, Meryl Streep, and John Lithgow?
It is important to remember that the basis of the DoJ's suit isn't
that agency model pricing is wrong.
A lot of the sentiment behind the investigation and resulting lawsuit was that Apple conspired with five of the Big Six publishers to edge out Amazon by forcing the adoption of
agency model pricing.
Almost immediately after Apple launched its iBookstore in April 2010 and the Publisher Defendants imposed
agency model pricing on all retailers, the Publisher Defendants» e-book prices for most newly released and bestselling e-books rose to either $ 12.99 or $ 14.99.
Sorry, but for the major publishers — you know, those publishers who are being sued by the Department of Justice for price fixing and for others who have followed in their footsteps and have implemented
agency model pricing — they don't want to sell the e-book.
Once again, it's worth a look at the composition of the Kindle Store bestseller lists: 18 of the top 50 bestselling titles in the Kindle Store are by indie authors, compared with zero just nine months ago when publishers were launching their ill - fated
agency model price - fixing scheme.
Not exact matches
Knowing that e-books would be a big selling feature of the tablet, Apple arranged an «
agency model» with several book publishers that would allow them to set their own
prices.
In both situations, Apple had convinced major book publishers to go with an «
agency model,» which would let them set their own
prices on ebooks (as in raise
prices on ebooks).
My (nonscientific) survey, which brought in more than 1,000 responses from digital marketing
agencies and freelancers, spanning 16 countries, including the United States, the United Kingdom and several European regions, included queries about services covered,
prices and payment
models.
Services Advisory Assurance Attest Services Audit, Reviews & Compilations Employee Benefit Plan Audits Internal Audit Services International Financial Reporting Standards (IFRS) IT Audit Services SEC Services SOC 1 and 2 Services Statutory Financial Audits Tax Accounting Methods Cost Segregation Estate Tax Credits Executive Compensation Federal Corporate Tax Generational Wealth Planning International Tax Mergers & Acquisitions Real Estate Research & Development Tax Credits Sales and Use Tax State & Local Tax Tax Accounting Tax Reform Transfer
Pricing Business Support DHG Search DHG Staffing Forensics Commercial Damages Digital & Computer Forensics Domestic Matters Fraud & Corporate Investigations Personal Damages Healthcare Consulting Alternative Payment
Models Center For Industry Transformation Points Beyond Blog CFO Advisory Bundled Payment
Models Clinical Documentation Improvement Enterprise Intelligence iluminus Reimbursement Revenue Cycle Senior Living Strategy Physician Enterprise Optimization International Services Chinese Business Services Japanese Business Services Investment Management DHG
Agency DHG Wealth Advisors IT Advisory Retirement Plan Administration Risk Advisory Finance & Process Transformation Internal Audit & Compliance Regulatory Services & Risk Management Technology Services Transaction Advisory Valuation Services Financial Reporting Healthcare Valuations
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Even though this is an online dating site and not a marriage
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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.
Before the
agency model, Amazon was buying new ebook releases at the wholesale
price of the hardcovers, then turning around and selling them for retail at dollars less.
Amazon refuses to adopt the
agency model, instead wanting to sell ebooks at a fixed maximum
price.
Hachette sells all its U.S. e-books under the
agency pricing model, and according to Thomas, is «very satisfied» with the
agency model, but Thomas adds, «We welcome the ability to experiment with
pricing, and offer readers a variety of choices.»
The publishers / Apple made out like there were all kinds of business reasons for the
Agency Model, and with very few exceptions no one seemed to hone in on the fact that at least one person was specifically quoted as saying that the reason for it was that they didn't want readers to get used to the 9.99
price point.
Amazon (and others) eventually went along with the
agency pricing model at the insistence of publishers.
We set ebook
pricing techniques in the metadata, so you just have to give the average list
price for your book as you were in an
agency model and we will do the magic for you.
Apple introduced a new
model — called the «
agency»
model — where the publisher sets the
price of the e-book and the retailer sells it for that
price, taking a 30 percent fee.
In fact, force Amazon to let their vendors dictate the
prices they should sell books for, a la «the
agency model.»
Apple and publishers may argue that the
agency model leveled the playing field for booksellers, forcing them to compete on hardware and software features instead of
pricing.
Amazon fixes Kindle ebook
prices to compete with Apple and welcome more consumers, and they refuse to operate according to an
agency model.
The Justice department ended up forcing Apple and the big five publishers to abandon the
agency pricing model.
While HarperCollins, like several other publishers before it, has been gunning for an
agency pricing model in... [Read more...]
While HarperCollins, like several other publishers before it, has been gunning for an
agency pricing model in which the publisher sets the
price of its books and basically forbids discounting on the part of the retailer, Amazon has long dug its heels in and refused to budge with the publishers in terms of its demand for a wholesale
model.
These terms were initially laid out as part of the settlement but are set to expire this fall, giving Hachette the option to once again attempt to impose
agency pricing instead of the wholesale
model that most entities operate under with Amazon.
That statement was that Apple could not engage in book discounting under the
agency model for at least two years, and then it could only negotiate terms of the so - called «
agency model» (in which the publishers set the
prices of their books, not the retailer) with one publisher at a time spread out over a period of six months each.
Before the arrival of the «
agency pricing»
model that Apple negotiated with ebook publishers — which allowed the publishers to decide what
price Apple would charge for their books on the iPad — Amazon had deals that paid a specific wholesale
price to publishers for a certain number of copies, and then it was able to charge whatever it wanted for the books in the Kindle store.
If Amazon had wanted to go head - to - head with Apple a few years ago — a giant who enjoyed monopoly control over both the online music business and the market for related hardware like the iPod — it might have offered record labels the opportunity to cut a deal that would have guaranteed them higher
prices, just as Apple has done with publishers and the
agency -
pricing model.
Apple, Penguin and Macmillan want to protect the so - called
agency model that lets publishers — not vendors — set e-book
prices, said the people on April 5, who declined to be identified because they weren't authorized to speak publicly.
Upholding the
agency model would give publishers more control over
pricing and limit discounting, helping the industry avoid sales losses as more consumers buy books online.
This new
model would change the way that books were
priced as well as shifting to an «
agency» basis whereby Amazon instead of receiving a discount and selling the book at a
price of their choosing, would sell books at a
price set by the Publisher and receive a commission of 30 % on that
price.
Hachette Book Group USA, where authors include Stephenie Meyer and Malcolm Gladwell, announced Thursday its support for the
agency model, which gives publishers more control over
pricing.
This
agency model overtook Amazon's practice of buying books at a discount from publishers and then setting its own
price for e-reader devices.
Under Macmillan's
model, known as the «
agency model,» e-books will be
priced from $ 12.99 to $ 14.99 when first released, with
prices changing over time.
It's just part of that
agency -
pricing model that so many publishers have adopted.
Hagens Berman, a consumer rights class - action law firm, today announced it has filed a nationwide class - action lawsuit claiming that Apple Inc. is guilty of illegal
price fixing related to the
Agency Model for
pricing e-books.
«Apple decided to offer the Publisher Defendants the opportunity to move from a wholesale
model — where a publisher receives its designated wholesale
price for each e-book and the retailer sets the retail
price — to an
agency model, where a publisher sets the retail
price and the retailer sells the e-book as its agent.»
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.»
The class action seeks damages «for the purchase of e-books, an injunction against
pricing e-books with the
agency model and forfeiture of the illegal profits received by the defendants as a result of their anti-competitive conduct which could total tens of millions of dollars.»
Ebook
pricing, whose
prices are better, and how the
agency pricing model has affected who sells what titles
In April of 2010, the so - called «
agency model» of ebook
pricing came into effect and caused a furor in the publishing industry.
So, in the name of antitrust, the level playing field of the past two years —
agency model e-books were
priced the same whether sold by Amazon, Barnes & Noble or independent bookstores — will likely revert to a situation where a near - monopoly power determines
pricing and most other retailers see their already - smaller market share shrink.
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.