The letter also says that the new agreement with Amazon is a return to a «
version of agency pricing that, with some limited exceptions, gives control of e-book pricing to Simon & Schuster.»
An email from Carolyn Reidy (pictured), president and c.e.o. at Simon & Schuster, said that the agreement, which covers print and digital books, is «a return to
a version of agency pricing that, with some limited exceptions, gives control of e-book pricing to Simon & Schuster».
It addresses our mutual concerns about preserving the value of our intellectual property in the marketplace, as it is a return to
a version of agency pricing that, with some limited exceptions, gives control of e-book pricing to Simon & Schuster, while providing us the flexibility to deliver great prices for readers.»
While no official announcement has been made — that I have found — sources in the know say that Amazon and Simon & Schuster have inked a new deal with puts in place a modified
version of the agency pricing model.According to Publishers Weekly, the new deal will take effect the beginning of next year.
Not exact matches
The final
version of the
pricing tiers in the Apple
Agency Agreements contained the $ 12.99 and $ 14.99
price points for bestsellers, discussed earlier, and also established
prices for all other newly released titles based on the hardcover list
price of the same title.
But the shortsightedness
of publishers falling fast for the
Agency plan is that they actually think that if they keep e-books away from the customers by either delays or
pricing, that customers will go to hardcovers or pay the 50 % higher
price for a digital
version.
HarperCollins and Hachette are the first major publishers to absolve the
agency pricing model for the UK
version of Amazon.
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.
In the very short
version of this story, Apple got together with big publishing and invented something called the
agency pricing model.
The shift to
agency pricing (in some cases, publishers have
priced their ebooks higher than the
price Amazon charges for the print
versions); the rise in sales
of indie - authored, low -
priced ebooks; device fatigue and a slow renewals cycle; a lack
of good competition to Amazon; adoption rates decreasing; reading time diminishing; and output reaching saturation point.
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.»
The shift to
agency pricing (in some cases, publishers have
priced their e-books higher than the
price Amazon charges for the print
versions); the rise in sales
of indie - authored, low -
priced e-books; device fatigue and a slow renewals cycle; a lack
of good competition to Amazon; adoption rates decreasing; reading time diminishing; and output reaching saturation point.