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Old 02-09-2010, 07:49 PM   #1
Sonist
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Amazon's In Luck: Some Major Publishers Not Sold On Kindle "Agency" Model

From TBI Research:

"... one major book publisher we spoke with sees no reason to shift to that model right now or anytime in the near future.

The reason is that book publishers make less money from the agency model than they do from the traditional wholesale model (in which Amazon buys a book license at the full wholesale price, and then sells each copy for whatever it wants, often losing money on the sale). The agency model, therefore, also leaves publishers less money to pay authors and agents.

According to one executive we spoke with, it's also still unclear if Amazon will continue to command its dominant 90% share of the e-book market, so there isn't much reason to set a precedent by adopting a model that makes everyone less money per book...."
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