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.
Mark Coker, CEO of ebook distribution site Smashwords, actually spoke out in a recent blog post in favor
of the agency pricing model.
The next issue I had with the author's assertion that Amazon is The Big Evil goes to her condemnation for Amazon refusing to sell books from the Big Five (it wasn't six at that point) back at the beginning
of the agency pricing model.
I'm told that the sales tax collection is a by - product
of the agency pricing model.
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.
Even though this is an online dating site and not a marriage
agency, the
pricing model is comparable with that
of the most popular marriage
agencies.
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.
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.
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.
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.
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.
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.
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.
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.
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.»
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.
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.
He said the Department
of Justice had ruled that the
agency model was «legal», and the DOJ mandated deals (
agency - lite) that allowed for retailer discounting
of agency -
priced titles would come to end this year.
Glance over at Explaining the
Agency Model for E-Book Pricing in Layman's Language for a super-quick overview of what the agency model actually means, since unless you're a writer or otherwise connected with the publishing industry, most of the brouhaha in question actually won't mean much t
Agency Model for E-Book Pricing in Layman's Language for a super-quick overview of what the agency model actually means, since unless you're a writer or otherwise connected with the publishing industry, most of the brouhaha in question actually won't mean much to
Model for E-Book
Pricing in Layman's Language for a super-quick overview
of what the
agency model actually means, since unless you're a writer or otherwise connected with the publishing industry, most of the brouhaha in question actually won't mean much t
agency model actually means, since unless you're a writer or otherwise connected with the publishing industry, most of the brouhaha in question actually won't mean much to
model actually means, since unless you're a writer or otherwise connected with the publishing industry, most
of the brouhaha in question actually won't mean much to you.
And although Fictionwise lost a LOT
of its inventory once the
agency pricing model took effect (more on this in a later post), they still sell a lot
of titles from smaller publishers, which will also be in various DRM - free formats.
I mean, Amazon had a very high percentage, around 90 percent, a few years ago when the
agency model, as it's called, was introduced in these five or six publishers that agreed to set the
price of e-books between $ 12 and $ 15.
Of course, many of those condemning Rutherford and those like him also point to the Bowker report about the price of e-books not rising under the agency pricing model as evidence the Department of Justice is wrong in claiming prices will rise under the agency mode
Of course, many
of those condemning Rutherford and those like him also point to the Bowker report about the price of e-books not rising under the agency pricing model as evidence the Department of Justice is wrong in claiming prices will rise under the agency mode
of those condemning Rutherford and those like him also point to the Bowker report about the
price of e-books not rising under the agency pricing model as evidence the Department of Justice is wrong in claiming prices will rise under the agency mode
of e-books not rising under the
agency pricing model as evidence the Department
of Justice is wrong in claiming prices will rise under the agency mode
of Justice is wrong in claiming
prices will rise under the
agency model.
«As Apple prepared to introduce its first iPad, the late Steve Jobs, then its chief executive, suggested moving to an «
agency model,» under which the publishers would set the
price of the book and Apple would take a 30 % cut.
When the ebook
agency pricing model came under fire by the US Justice Department and the European Union, companies began to settle out
of court.
The mode
of business that DeFelice is referring to is the much contested wholesale
model versus
agency pricing model that has been at the center
of this lawsuit.
Instead, the agreements allow e-book retailers to discount
prices up to the aggregate cost — generally a 30 % commission under the
agency model —
of the discount computed over the course
of the contract, which is generally a year.»
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.
Agency pricing only supports the traditional
model of publishing that has failed to change and innovate with the changing marketplace.
Mark Coker, CEO
of Smashwords and a long - time supporter
of the
agency model, spoke to Good e-Reader about why this
model is good for authors and publishers — the two stakeholders who must secure a profit in order to continue providing books — and good for smaller retailers who otherwise couldn't compete with a corporate behemoth in terms
of pricing.
This is mainly because most
of the companies just got into eBooks and have temporarily adopted the
agency model for eBooks to determine set
prices until something more official is produced.
That collusion, in which the publishers all agreed to switch to an
agency pricing model instead
of the previously followed wholesale
model, causing a sharp increase in the
price of ebooks when Amazon was no longer allowed to discount publishers» titles.
Amazon tried to force the
price of the books down too far too fast, and the publishers fought back what was called the
agency model whereby they are able to set a retail
price that Amazon can move from.
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.
Publishers agreed to his «
Agency Model» (publishers set the
price, Apple gets 30 %
of the profits, and publishers can not allow lower
prices on a competing service).
But now I've had time to look at the so - called
agency model of pricing... and I think it makes sense.
No, I see this venture into publishing as a way to rub the noses
of the legacy publishers, especially those who adopted the
agency model of e-book
pricing, in the excrement that will soon be hitting the fan.
Worse, the general reading public doesn't understand that Amazon can't control the
prices for those books from the
agency model publishers, and it is the one on the receiving end
of the bad customer feelings.
(For those who follow industry news, it was the launch
of Apple iBooks — and its
agency pricing model — that ultimately led to the Department
of Justice lawsuit that accused Apple and the Big Five publishers
of ebook
price fixing.)
Some big trade publishers took back control
of pricing on Amazon reverting to the
agency model.
The rumblings about Apple (s aapl) and the possible anticompetitive nature
of its deal with book publishers over «
agency model»
pricing have turned into an all - out roar, with the news that the Department
of Justice has warned the various parties about an impending antitrust lawsuit.
In fact, the kind
of price control that the publishers have tried to assert over retailers through the
agency model actually used to be flat - out illegal in the U.S. until relatively recently.