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The later 1.5 liter American - market CRX HF (high fuel economy)
model (chassis codes EC1 and AF) could also reliably achieve very good gas mileage, more than a decade before gas - electric hybrids appeared on the market, and at no
price premium over the base
model; the 1.5 liter is rated by the U.S. Environmental Protection
Agency (EPA)(under the
new rating system) at 42 miles per U.S. gallon (5.6 l / 100 km; 50 mpg ‑ imp) city and 51 miles per U.S. gallon (4.6 l / 100 km; 61 mpg ‑ imp) highway.
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.
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.
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.
Industry insiders and general interested parties proclaimed that under the
new Agency model being adapted by major publishers in determining global eBook
prices, violates anti-trust and anti-competitive laws.
I agree the 10 % would remain the same but it's 10 % of the publisher's revenue, not the retailer's sale
price, and under the
new agency model the publisher's revenue (as Macmillan has explicitly stated) would be less, hence the author's revenue would also be less.
As a way of getting publishers on board with the
new device, which the company hoped would allow it to compete with the Kindle as an e-reader, Apple agreed to the «
agency model» for
pricing.
Last year, a federal court in
New York ruled that five houses, Hachette included, had illegally colluded to change all of their e-book sales arrangements to something called the
agency model, which would allow them to control the
prices at which their titles are sold.
It is the first shot across the purchasing bow in big publishers» efforts to reset ebook
pricing above the loss - leader $ 9.99
price point and retake control over that
pricing by moving from the wholesale selling
model to an
agency selling
model (first reported exclusively in Lunch Deluxe on January 19), at least for ebooks published simultaneously with
new hardcover releases.
The complaint claims that the five publishing houses forced Amazon to abandon its discount
pricing and adhere to a
new agency model, in which publishers set
prices and extinguishedcompetition so that retailers such as Amazon could no longer offer lower
prices for e-books.
This settlement will allow retailers to set the
price of ebooks again, meaning the publishers will have to negotiate all
new contracts with their retailers and agree to abandon the «
agency model» that was established under the supposed anti-trust violations.
On the
agency pricing model front, a third member of the Big 6, Simon & Schuster, has announced a
new pricing agreement with e-tailers.
When switching to the
agency model, publishers almost universally raised
prices on e-books across the board: Amazon had sold
new releases at $ 9.99 (often taking a loss, paying publishers about $ 13 for e-books with a $ 26 «list
price»), and backlist (older) titles around $ 6.39.
Hagens Berman, a consumer rights class - action law firm, filed the original complaint in U.S. District Court in California in August alleging that Apple, HarperCollins, Hachette Book Group, Penguin Group, Simon & Schuster and MacMillan teamed up to force Amazon to raise its $ 9.99 e-book
pricing to a
new, and often more expensive, «
agency model» where publishers set the
price.
The stated goal was to mandate retail
prices for Kindle books, and all other ebooks under the
agency model publishers» control, at levels that would be 30 to 50 percent higher than the $ 9.99
price that Amazon had previously set for Kindle Store
new releases.
Last week, Cue took the stand to explain the reasoning that led Apple and the publishers to set up an entirely
new pricing model for electronic books, called the
agency model.
So as publishers wrestle back consumer
pricing via the
new agency model, driving ebook
prices up, it's clear they're inadvertently (and sometimes deliberately) nudging consumers back to print.
The move to the
Agency Model will mean $ 12.99 to $ 14.99
prices for
new releases from Big Publishers and higher
prices in general (probably).
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.
The
pricing model that is constantly referred to in this complaint is labeled the
new «
Agency model» which is really at the heart of this case.
Not only would it be impressive
new technology that addresses a major customer demand, it would benefit from the first major change in eBook
pricing since the introduction of the
Agency Model.
Like most endeavours at the
agency, the blog's topics will have a certain statistical gravitas: the Framework for Environment Statistics, the System of National Accounts, the Consumer
Price Index Enhancement Initiative, the Survey of Financial Security, as well as some broader topics, such as the use of microdata or the
new model for publishing data online.
And a Wall Street Journal piece looking at the industry noted that when it comes to
newer titles, e-book
prices are still in many cases actually higher than the printed version, which isn't subject to the
agency model (although that could be because retailers like Amazon are willing to take a loss on print).