First, ebooks sold better in 2013 by numbers of total sales, but actually resulted in less overall revenue than they have in the past; this may stem from the understanding of where ebook pricing should fall, and the fact that Amazon was able to discount ebooks again after the stripping
away of agency pricing following the DOJ lawsuit against the Big Five publishers.
Not exact matches
What we should be wanting is more widespread adoption
of ebooks in general and getting
away from the
agency model and artificially high
prices can do that.
Amazon quickly came to fully appreciate that not just Macmillan but all five Publisher Defendants had irrevocably committed themselves to the
agency model across all retailers, including taking control
of retail
pricing and thereby stripping
away any opportunity for e-book retailers to compete on
price.
The Publisher Defendants» collective adoption
of the Apple
Agency Agreements allowed them (facilitated by Apple) to raise, fix, and stabilize retail e-book prices in three steps: (a) They took away retail pricing authority from retailers; (b) they then set retail e-book prices according to the Apple price tiers; and (c) they then exported the agency model and higher retail prices to the rest of the industry, in part to comply with the retail price MFN included in each Apple Agency Agre
Agency Agreements allowed them (facilitated by Apple) to raise, fix, and stabilize retail e-book
prices in three steps: (a) They took
away retail
pricing authority from retailers; (b) they then set retail e-book
prices according to the Apple
price tiers; and (c) they then exported the
agency model and higher retail prices to the rest of the industry, in part to comply with the retail price MFN included in each Apple Agency Agre
agency model and higher retail
prices to the rest
of the industry, in part to comply with the retail
price MFN included in each Apple
Agency Agre
Agency Agreement.
Even as publishers in the United States levy
agency -
pricing on their ebooks at much higher rates than the Amazonian $ 9.99 preference, many observers fear, as Wischenbart cites, that this is driving readers
away from trade ebooks and contributing to the slowing
of digital growth in sales.
Indeed, at the time the Publisher Defendants snatched retail
pricing authority
away from Amazon and other e-book retailers, not one
of them had built an internal retail
pricing apparatus sufficient to do anything other than set retail
prices at the Apple
Agency Agreements» ostensible caps.
But the shortsightedness
of publishers falling fast for the
Agency plan is that they actually think that if they keep e-books
away from the customers by either delays or
pricing, that customers will go to hardcovers or pay the 50 % higher
price for a digital version.
Unsurprisingly, when
prices went up on
agency -
priced books, sales immediately shifted
away from
agency publishers and towards the rest
of our store.
But I think we might be a couple years
away from breaching 50 % — which might require a technological advance like color e-Ink or foldable screens, or a game - changing event in the publishing world, such as superstar authors going independent and straight to e-books, big publishers embracing e-books, or lowering
of e-book
pricing (perhaps as a result
of the
agency model going
away).
If
agency pricing goes
away, the company will be able to discount e-books the way it discounts print books and can likely return to its pre-
agency pricing tactic
of pricing New York Times bestsellers at $ 9.99.
The more I think about it the more I believe that this is a smoke screen used by a government
agency to rally public discord
away from their own bureaucracies which via their HST, land transfer taxes and mortgage insurance rules — all percentages calculated on the sale
price of the home by the way — do more to inflate house
prices without providing any evidentiary benefit to the homeowner.