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More eBook trouble for Amazon

Amazon has run into more trouble with its pricing -- after Macmillan and HarperCollins, a third company has pressured the online book retailer to raise prices on their Kindle eBooks. This time it's the Hachette Book Group, and their CEO in an internal memo says that the company will switch to an "agency model" for eBook sales.

What's an agency model? Why, it's the 70%/30% split between platform and content provider currently used in the App Store, and the same model that's planned to be used in iBooks on the iPad. And it's important to note that this is exactly what Jobs said would happen -- that publishers would move away from Amazon when they had another system to go with.

What we don't yet know is where prices will end up on the iPad -- Jobs said that prices would be "the same," and it's looking more and more like the $9.99 bestseller price is going to be abandoned for $14.99 or even higher. But that's only because Amazon is fighting shadows with the iPad right now. If they can actually woo some content back to their side when the iPad actually releases, we may see prices get a little more competitive. Until then, the iPad hasn't even come out and it's already shaking up the ebook industry completely.

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Amazon has run into more trouble with its pricing -- after Macmillan and HarperCollins, a third company has pressured the online book...
 

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xs2jet

Let's remember that not one publisher or e-book seller are charity's. The whole point in the end is for them to make MORE MONEY! I have been reading e-books for years on my Palm through e-reader and fictionwise (pre geographical restrictions now I can't buy any e-books I live in Europe) and some older book prices were considerably cheaper than recently published bestsellers which is great. When I read a book it's new to me! I really don't get it paper bpoks must be more expensive to produce and I can buy them anywhere, no problem, I can share them with my friends, I can give my old books away. With ebooks I can't even download books I bought in Holland and England to the e-reader of my choice on my own computer and my own iPhone due to DRM restrictions, what is this all about?????

February 08 2010 at 4:44 AM Report abuse rate up rate down Reply
Rudy

competition is supposed to lower prices, but instead apple decided to screw amazon when they really are screwing the customers.

and I thought the point of e-ink readers was the paper- like ease of reading? is the iPad really a good alternative with its LCD screen?

February 07 2010 at 12:48 PM Report abuse rate up rate down Reply
milkmage

I think you all need to read these before you "blame" apple and/or defend amazon

unless you're an author doing business with amazon and selling Kindle format you can't really speak to this topic. sure, as a consumer, you see see prices going up, because this debate is focused on top sellers/new releases... but as with printed books, the prices will drop over time. if you really want to read the latest from your favorite author the day it comes out then a few extra bucks won't really matter, will it?

did anyone catch the fact that amazon pulled macmillans PRINTED books too? WTF, I thought this was all about ebooks.

charles stross:
http://www.antipope.org/charlie/blog-static/2010/01/amazon-macmillan-an-outsiders.html

tobias bucknell
http://www.tobiasbuckell.com/2010/01/31/why-my-books-are-no-longer-for-sale-via-amazon/

john scalzi
http://whatever.scalzi.com/

this is important (last paragraph from stross' piece above)

Just before Apple announced the iPad and the agency deal for ebooks, Amazon pre-empted by announcing an option for publishing ebooks in which they would graciously reduce their cut from 70% to 30%, "same as Apple". From a distance this looks competitive, but the devil is in the small print; to get the 30% rate, you have to agree that Amazon is a publisher, license your rights to Amazon to publish through the Kindle platform, guarantee that you will not allow other ebook editions to sell for less than the Kindle price, and let Amazon set that price, with a ceiling of $9.99. In other words, Amazon choose how much to pay you, while using your books to undercut any possible rivals (including the paper editions you still sell). It shouldn't surprise anyone that the major publishers don't think very highly of this offer ...

February 06 2010 at 7:16 PM Report abuse rate up rate down Reply
Todd

Just a note to those who think that ebooks should be at rock bottom pricing: it still takes money to create a book. The author, the editor(s), the distributor all need to get paid at the end of the day. Taking the cost of digital distribution as the only criteria for pricing only undersells the value of the people in the chain that create books, regardless of what device they're read on or what revenue split models are in play.

@Jordan - tell us how badly Apple f'd up with the ipad when it's out in the market for a couple quarters, instead of your a priori oracle act.

February 06 2010 at 2:03 PM Report abuse rate up rate down Reply
PookieBadMuffin

This is not eBook trouble for Amazon - it's eBook trouble for consumers.

February 06 2010 at 9:26 AM Report abuse rate up rate down Reply
rbz

It seems to me that over time this model will be bound to change. Right now an author really NEEDS a publisher. Sure, they can self publish, print their own books in small quantity - but without the marketing clout of the publishers, it'll be an uphill battle and a riskier proposition.

I think you'll see a trend towards more content being available direct from the author. The risk/benefit completely shifts when the cost of publishing is $0. Something like http://www.smashwords.com.

February 06 2010 at 7:21 AM Report abuse rate up rate down Reply
1 reply to rbz's comment
Charli

why not something like the ipad. Already you have musicians self publishing their music. Why couldn't an author submit their own book.

February 07 2010 at 10:13 PM Report abuse rate up rate down Reply
DJ

I am siding with publishers here. First, prices will go down, as time From hardcover release progresses. Second it's competitive market, if sales are too low, prices will go down. publishers will compete themselves. Last, I don't understand Internet mentality that stuff on Internet should be very cheap or free. someone in the family has to make money. Be it in just pixels or real printed book, there is no less work to create anything. Maybe someone can do it for free, but real life has responsibilities. And consumers should know - if you don't like the price, don't buy it. Get a second hand book a year after The original hardcover was publihed. There are options.
Diclaimer that I am not working in publishing, video or music industry. I do work creative job though and believe in fair pricing.

February 06 2010 at 4:25 AM Report abuse rate up rate down Reply
4 replies to DJ's comment
Jake

It's just so sad to see the book publishers trying their best to strangle the ebook industry before it has a chance to really build a strong base of support. $10 is too expensive to rent books (you can't but it if it's DRMed, much as Amazon/Apple would like you to think otherwise) and $15 is preposterous when the physical books cost less, have fewer restrictions and can be resold if desired.

So a big FU to book publishers until they end this crap. I won't buy a single eBook with the current price/ DRM structure. These short-sighted executives are amazingly making even worse mistakes than the music industry in a futile attempt to preserve an outdated business model. The dinosaurs will die, eventually, but in the meantime we can look forward to another 5 years of ebook suckitude.

February 06 2010 at 1:47 AM Report abuse rate up rate down Reply
Jake

It's just so sad to see the book publishers trying their best to strangle the ebook industry before it has a chance to really build a strong base of support. $10 is too expensive to rent books (you can't but it if it's DRMed, much as Amazon/Apple would like you to think otherwise) and $15 is preposterous when the physical books cost less, have fewer restrictions and can be resold if desired.

So a big FU to book publishers until they end this crap. I won't buy a single eBook with the current price/ DRM structure. These short-sighted executives are amazingly making even worse mistakes than the music industry in a futile attempt to preserve an outdated business model. The dinosaurs will die, eventually, but in the meantime we can look forward to another 5 years of ebook suckitude.

February 06 2010 at 1:44 AM Report abuse rate up rate down Reply
mkent

I get that the book publishers would like to charge a lot more for books, authors would like to get more in royalties, etc. But for me, as a consumer, I resent paying for pixels like I would pay for paper & ink. I'm not saying I won't pay at all, but I don't want to pay the same price, when the production costs are so dramatically different.

February 06 2010 at 1:37 AM Report abuse rate up rate down Reply
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