Because when the big publishers colluded with Apple to raise
prices under the Agency model, $ 12.99 and $ 14.99 were the price points for ebooks.
It might be fortunate for Amazon that the Big 5 aren't in KU as the trad publishers have reverted to high
pricing under the agency model and the cash strain of paying out, for example, $ 7 per borrow on a best - seller could be crippling even for a giant company such as Amazon.
Not exact matches
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.
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.»
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.
Under Macmillan's
model, known as the «
agency model,» e-books will be
priced from $ 12.99 to $ 14.99 when first released, with
prices changing over time.
Three, if you take the time to shop around to the smaller sites or if you keep an eye on which publishers aren't operating
under the
agency model, you can find better
prices.
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 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.
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.
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.
The
Agency model is also
under fire right now, especially in Europe where the EU is launching a major investigating in Publisher
Price Cartels where price fixing is ill
Price Cartels where
price fixing is ill
price fixing is illegal.
So all titles you sell at BN through Smashwords that are
under $ 2.99 will earn you 60 % over 40 %, free and clear, without worry that retailers will discount (as Smashwords now operates with the
Agency pricing model, except that we are the «agents» and set our own
price).
And those of us who aren't thinking about the
price, but whether
under an
agency model we'll be able to afford books at all... we're scratching our heads wondering why?
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.
Under the terms of the Hachette's settlement of the Department of Justice lawsuit, the existing contracts which allowed for the
agency pricing model had to be scrapped and rewritten, a job which simply takes a lot of time and effort from parties for both the publisher and the retailers.
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 %.
Under the so - called
agency pricing model, publishers keep roughly 70 % of the revenue from each individual sale, with Amazon receiving an estimated 30 % as their fee.
Certain digital content is distributed
under an
agency pricing model in which the publishers set fixed
prices for eBooks and NOOK receives a fixed commission on content sold through the eBookstore.
Under the
agency model, a publisher sets a retail
price for a specific book, which establishes a level playing field for all resellers.
Currently the
Agency model in the UK and Europe is
under fire due to many groups claiming they are little more then a
price fixing cartel, which is illegal in the UK.
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 prod
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 prod
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.
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.
Ebooks on Apple's iBookstore rose to the range of $ 12.99 to $ 14.99
under Apple's
agency pricing model, which allows book publishers to set the
price of an ebook while Apple takes a 30 percent cut.
The publishers noted that while they continue to sell e-books
under the wholesale
model, they have «benefitted significantly» — along with authors, booksellers and consumers, — from the ability of the Big Six publishers to adopt the
agency pricing model with Amazon, since those arrangements, «contributed dramatically to increased competition and diversification in the distribution of e-books.»
So far, there is no reason to think that this can not occur
under the
agency pricing model as long as the distribution market for e-books remains competitive.
Amazon is guilty of keeping e-book
prices as low as possible so that readers can read more books then they could
under the
Agency Model.
For NON
agency publishers the removal of the DRM requirement would let the retailer drop their
price and still make the same margin after costs
under the wholesale
model.
Even if Apple and Amazon were on the same
agency arrangement with a Publisher, and that Publisher were able to move the retail
price of the e-book to the top of the Apple
price tier and sell it for $ 12.99, the Publisher would still receive less revenue
under the
agency model: $ 9.10 instead of the $ 13.00 in revenue
under the wholesale
model.
Under the
agency model (described in further detail here), publishers set the final sale
price of an e-book, and the retailer (like Amazon, B&N, or Apple) collects a cut, usually 30 %.
Between lower
prices for indie and non-Big 5 publishers and Kindle Unlimited, I am reading a lot more than if I bought only Big 5 e-books
priced under their modified
agency pricing model.
If one publisher insisted on the
agency model, selling Stephen King's books for $ 9.99, they would make more money per sale, but lose more over the long run because another publisher would offer their books
under the usual terms, letting the retailer 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.
Under the
agency model, when the publisher mandated a retail
price of $ 12.99 to $ 14.99 for an ebook, it stood to receive 70 % from Amazon or another retailer — or somewhere between $ 9 and $ 10.50.
BN.com comparable sales reflect the actual selling
price for eBooks sold
under the
agency model rather than solely the commission received.
He explained that,
under the agreements, Apple would «go to [an]
agency model, where [publishers] set the
price, and we get our 30 %, and yes, the customer pays a little more, but that's what [publishers] want anyway.»
One other note on March's decrease from February's sales: just like sales dipped to their lowest point of the year last April, the first month that 5 of the «Big 6» publishers raised e-book
prices under «
agency model»
pricing, March 1 marked the date when Random House joined ranks and embraced the
agency model as well.
Both these deals are
under the
Agency Model — 70 % cut for Publishers and the freedom to set their own
prices.
Under the
agency model, book publishers set their own e-book
prices and the retailer (agent) receives a commission.
But
under the
Agency model, Amazon earns 30 % of the ebook
price.
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.
Under the traditional wholesale
model, which is used for print books and was used for e-books as well until publishers adopted the
agency model in 2010, publishers set a book's suggested retail
price and retailers can discount the books to any
price that they want.
Under the traditional wholesale
model, which is used for print books and was used for e-books as well until publishers adopted the
agency model in 2010, publishers set a bookâ $ ™ s retail
price and retailers can discount the books to any
price that they want.»
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.
Under the
agency model, Publisher A sets
price B and Retailer C receives some fraction of B.
Under the wholesale
model, however, Retailer C is free to set the retail
price as high as that same said B set by the Publisher.
Under the
agency model, the publisher is the only party that can discount e-books, and an e-book's
price must be the same across all retailers (i.e., an e-book can't go on sale at just one retailer).
At the heart of the flurry of lawsuits is a challenge to «
agency pricing,» the e-book
pricing model under which book publishers set their own
prices for e-books, paying the e-tailer («agent») a commission.