This model of ebook selling isn't even a year old yet, so there are certainly kinks to work out.
Not exact matches
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.
Sony and Kobo are in big trouble with their current business
model of selling hardware and
ebooks.
She took a moment out
of her busy schedule to discuss the evolutionary growth
of ebooks in the library, how the discovery
of content is a top priority, what it took to talk Simon & Schuster and Penguin into joining the library lending
model, and how libraries are
selling ebooks.
«We are delighted to work with Scribd and Oyster to offer this exciting new
model for readers to find and read
eBooks, and to do so in a manner that respects the value
of our authors» creative endeavors and supports our mutual goals
of selling the most possible copies
of their books.»
Recent
models to the way books and
ebooks are conceived
of and
sold have offered some truly unique forms
of paying for content.
We've previously mentioned that Amazon followed the console business
model,
of selling hardware cheap and recouping its losses by
selling content, when it came to the Kindle Fire and one
of its methods
of making money is from
eBooks sold on the Kindle bookstore.
Tweet Small Business Marketing as a Business
Model When I started my online business in 2006, my dream and goal was to write and
sell eBooks on a variety
of topics and create information products to
sell online.
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.
When I first came online in 2006 people were teaching this
model of writing an
eBook on a niche topic and then
selling it via their own one page website.
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.
At this year's BookExpo America, Barnes and Noble's Theresa Horner, VP
of Digital Content, detailed how the leading brick - and - mortar book
selling chain has incorporated
ebooks into its in - store
model.
If you look at the recent decline in
eBook sales, this is partly attributed to the abolishment
of the Agency price
model of selling books.
Penguin Random House are in the perfect position now to try new things, without disrupting their traditional business
model of selling both print and
eBooks.
What I don't think people are really catching here is that due to the publishers» «agency
model», Amazon gets 30 %
of the sales price
of an
ebook they
sell.
In a world where traditional publishers are still basically brokering to
sell and warehouse paper rather than books (i.e. sticking to an antiquated business
model in a market where
ebooks are rapidly growing to be the majority
of sales and shouldn't be ignored), this is a landmark deal.
For the next two years, Amazon and other retailers will be able to
sell the publishers»
ebooks at their own determination
of the price, or the original «wholesale
model.»
This is because
ebooks are
sold under the agency
model where the publisher sets the price and gets 70 %
of each sale, and the retailer gets the remaining 30 %.
If Amazon
sells between approximately 65 to 74 percent
of the
ebooks in the United States market one might easily «guess» that it's 3rd most popular e-reader outsells any e-reader
model from Barnes and Noble or Kobo and I would not call any
of their e-readers flops.
It represents independent booksellers nationwide, more than 200
of which are now
selling Google
eBooks using — you guessed it — the agency
model.
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.
Prior to the Department
of Justice investigation, the «wholesale
model» allowed retailers to purchase the
ebooks from the publishers and then
sell them for any amount they chose, even if it meant taking a loss on the digital books.
Speaking
of the market reacting, we discussed the Agency
Model of publishers determining the prices
of ebooks, rather than the stores that
sell them.
When Apple allegedly approached the publishers about switching to an agency
model in order to prevent Amazon from
selling ebooks at what was often below cost in order to encourage the sale
of Kindle readers, Amazon lost the option to
sell ebooks at its previously advertised $ 9.99 price point.
Among the accusations the DoJ will now bring up in court is that Penguin was actually very instrumental in arranging the «agency
model» with Apple in an attempt to force the price
of ebooks higher than they were currently being
sold for, namely, that Amazon was purchasing the
ebooks at the original wholesale price and
selling them for a marginal profit — or in some cases, an actual loss, which it is allowed to do as long as it can afford to — in order to
sell Kindle e-reader devices.
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.
Amazon has taken the bold step
of allowing Best Buy to
sell its Kindle
eBook reader directly in its stores.The new
model Kindles will be available in the huge electronic superstores over in the States in time for Christmas.It will be the first time that... Read more
The current
ebook stores are optimized for a
model of $ 1 to $ 5 books that
sell at high volumes.
So I was dismayed and disappointed when I discovered its publisher (Viking, a part
of Penguin Group) has used the potentially unlawful agency
model of eBook pricing to force Amazon to
sell the Kindle version
of the book for $ 9 more than what it charges for the hardback version.
There are a few reasons this isn't as far - fetched as you may think — lots
of backlist books being released as
ebooks, indie authors continuing to
sell books at $ 1, smaller publishers and new publishers taking advantage
of Amazon and Apple's 70 % cut
model.
Prior to the agency
model Amazon was free to set whatever customer price they wanted for
ebooks, even if it meant they were
selling every single one
of them at a loss.
John Locke, author
of Saving Rachel says: «The first time I saw the business
model for
selling eBooks on Kindle, my eyes lit up like a kid at Christmas,» says John, «because Kindle doesn't just level the playing field for self - published authors, it actually slants it in our favour.
I'd like the ability to
sell technical
ebooks in a sort
of subscription
model, letting customers download updated versions
of the same
ebook.
That's for a very good reason... because
selling eBooks that are 100 % yours is one
of the most lucrative Internet business
models you'll ever find.
The iPad: a magical tablet
of awesome, the fastest -
selling gizmo
of all time, destroyer
of eBook pricing
models, bulldozer
of netbooks.
The
eBook sales surge, and the increased power this has given authors, combined with the new ability
of backlist to ignore its status and
sell to new (and old) customers makes it clear that the front - list centric
model of publishing is heading for a crisis.
Austin H. Williams@12: 30... Apple offering a pricing
model that charges higher for
eBooks will be busted for collusion, but Amazon's practise
of selling at a loss in order to drive out competitors won't be called out for dumping.
Another reason I feel fairly certain that Amazon won't be stopped is the fact that Apple offering a pricing
model that charges higher for
eBooks will be busted for collusion, but Amazon's practise
of selling at a loss in order to drive out competitors won't be called out for dumping.
While the publishers who treat
ebooks as printed books make most
of their sales to the public and are rightfully concerned that school and library sales will erode the consumer sales that they need to survive, the publishers who have developed and champion the unlimited simultaneous use with perpetual access
model sell only to or principally to school libraries.
The
ebook retailing business consists
of three elements: hardware, content, and
selling model.
One
of the truly inspiring thing about
ebooks is that they offer endless opportunity to iterate and morph
selling and access
models.
Best -
selling spy novelist Barry Eisler and successful thriller novelist and self - publishing advocate Joe Konrath's
ebook Be the Monkey is a sprawling discussion as recorded on GoogleDocs; a loud cheer for what they call «indie - publishing», and an autopsy
of the publishing industry as it transitions from a paper - based
model to one dominated by digital texts.
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).
For those who are unaware, the retailer and the publisher have been locked in a dispute over contract terms; Amazon wants to remain under the wholesale
model in which it gets to determine the price
of the
ebooks it
sells, even if that means taking a loss in order to pass the savings on to the customer, and Hachette wants to go to the briefly - instituted agency
model in which the publisher determines the price.
For a look back at the history
of Apple negotiating with book publishers and a little more on how the agency
model came about, I recommend this WSJ article from 2010 and Michael Cader at Publishers Marketplace's look at how the introduction
of the iPad gave publishers «the opportunity to change the basic
selling terms
of ebooks with at least one major trading partner in a way that lets [them] take back control
of pricing and reassert their vision
of the value
of an electronic version
of a book.»
Also, there's the possibility
of the Douglas County
model seeing wider adoption in 2012: «Assured About Security, More Publishers Agree to
Sell Ebook Files to Douglas County Libraries» http://bit.ly/zdbiyI
That might seem harmless because it doesn't let Amazon
sell ebooks at a loss under the new terms
of the agency
model.
Amazon could
sell all their wholesale
model ebooks at a loss until the last competitor was run out
of business.
They want high
ebook prices so that they can hang onto their outdated IP - dependent business
model of selling paperbacks and hardcovers in big box brick & mortar stores for as long as possible.
This is the almost perfect example
of how one might expect a pure
ebook play to develop over time, publishing
ebooks to a time sensitive market while
selling the rights to someone else for a paperback edition, enabling them to keep stock costs lows and cash flow high and letting someone else worry about the odd economics
of the traditional
model!