Not exact matches
Apple and Penguin continue to fight it out in court, but most other publishers ended up disbanding the
old agency model and now allow online retailers to establish their own
prices.
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.
If you want to understand the
agency pricing model and its effects on e-book
prices, take a look at these
older posts.
But with respect to the
agency discount, Amazon demands that all non-Big-Six trade publishers sell it their ebook and physical book wares under the
old trade discount
model, which requires only that Amazon buy inventory at roughly 50 % off the publisher's suggested list
price (the discounts vary by publisher and can run as high as 55 %) and is silent on
pricing — allowing Amazon to discount as steeply as it wishes to win over customers.