Random House comments on Amazon Pricing

[Daithi]

Kennyc is absolutely right.

Macmillan has flat out said that it wants to raise prices to $14.99 and this is even higher than the price at which Amazon is currently selling its bestselling hardcovers (look here to see for your self).

I also really don't get the logic about preventing ebooks from eviscerate hardcover sales. Macmillan gets paid the SAME for for ebooks as they do for hardcovers, so what does matter if they sell more ebooks or hardcovers? Actually, since they get paid the same, they really make MORE money on the ebook because the cost of production is subtancially lower.

[whitearrow]

If I believed Macmillan was actually going to drop prices to paperback levels once the paperback was released, I wouldn't be bothered. But given the huge number of $10+ ebooks on MM's own site, Fictionwise, and elsewhere, of titles already in paperback -- well, I'm skeptical it's actually going to happen.

[Blue Tyson]

Originally Posted by Daithi

Kennyc is absolutely right.

Macmillan has flat out said that it wants to raise prices to $14.99 and this is even higher than the price at which Amazon is currently selling its bestselling hardcovers (look here to see for your self).

I also really don't get the logic about preventing ebooks from eviscerate hardcover sales. Macmillan gets paid the SAME for for ebooks as they do for hardcovers, so what does matter if they sell more ebooks or hardcovers? Actually, since they get paid the same, they really make MORE money on the ebook because the cost of production is subtancially lower.

Some of it is an element of elitist snobbery, too, I think.

[kennyc]

Just ran across this from PC World:

"Publishers are Shortsighted"

http://www.pcworld.com/article/18876...ice_fight.html

[Daithi]

Dr. James McQuivey at Forrester Research has a great take on the controversy as well -- In Amazon vs. Macmillan, Amazon comes off conqueror.

[asjogren]

Dr. McQuivey makes good points - I guess that means that I agree:

1) Amazon will now make money selling Macmillan eBooks.
2) Publishers will ultimately be compelled to bring eBook prices down.
3) In that future, Amazon will make more money than it does now.

[kennyc]

But what about FORMAT?

[fugazied]

Originally Posted by Daithi

In regards to delayed releasing of ebooks, McIntosh said, "Our current policy is we release e-books at the same time as physical books," followed by "I haven't been convinced that it's good for the author or consumer to delay the release. My fear is that the consumer who has fully embraced the technology will buy another e-book that is available or lose interest altogether. What if I train the consumer that the best scenario is to get it free?"

Oh wow some common sense right there for a change.
The "saw only a bleak future at $9.99" is a worry, it looks like the publishers are revolting!

[Pardoz]

Originally Posted by jmaloney

So what you're saying is that you believe that Amazon will abide by the terms of their agreement, but not Macmillan?

If you have a copy of the text of the agreement between Amazon and Macmillan, please post it. Particularly the section laying out the details of Macmillan's obligation to lower e-book prices over time, by how much, and at what intervals, and what recourse Amazon has if Macmillan fails to live up to those obligations. I'm sure lots of us would love to read all the fine details.

[llreader]

Just a minor point of clarification - Macmillan will be setting retail prices for ebooks only, right? They are still running the traditional pbook model: hardcover with high cover price, volume discounts to retailers who sell at a lower price, and sometimes get rid of stuff at clearance prices. Then paperback, etc.

Is this correct? They are dealing with Amazon using two distinct business models simultaneously?

[Daithi]

Originally Posted by llreader

Just a minor point of clarification - Macmillan will be setting retail prices for ebooks only, right? They are still running the traditional pbook model: hardcover with high cover price, volume discounts to retailers who sell at a lower price, ans sometimes get rid of stuff at clearance prices. Then paperback, etc.

Is this correct? They are dealing with Amazon using two distinct business models simultaneously?

Yes, that is my understanding.

[llreader]

Then my take is two things. They aren't really setting the retail price at half that of a hardcover - they are setting the list price at half, but the list price is fixed. Second, it isn't clear whether they consider an ebook to be discountable - the argument so far is that the ebook price will go down with the paperback price, but it isn't clear whether they are considering an ebook to be a third format, with a fixed price in between the two.

Anyway, just more questions. We will just have to wait and see how this pans out.

[orwell2k]

A lot has been mentioned on eBook pricing, and justifications for the pricing.

Concumers see the lack of production/transport/retail costs (i.e. no paper and printing, no long-haul transport of books to shops, no retail outlets) and think the cost should crash. On the other hand, there are still editing, proofing, formatting and so on that must be done for all books to prepare them for mass production (either printing or eBook creation).

So I think there should be some reduction compared to paper books but perhaps not as much as many readers would think or wish to see.

I don't mind paying for something that has been through these processes. But the inordinate number of eBooks I have bought to date with massive errors is ridiculous - not just the odd typo but spurious characters throughout the book, or incorrect character encoding, or links to footnotes that don't work, or extra images included in the book package that are never able to be accessed - and the list goes on!

I agree that editing and proofing are significant costs in book creation, but I find it hard to believe these tasks are being more than spuriously done at the moment, given the large number of obvious errors compared to pBooks.

A vulgar yet eloquent line from a movie (I think!), whose name escapes at the moment, springs to mind as sanguine advice to our publishing friends: "Please don't piss down our backs and tell us it's raining!"

Justify your costs with editing and proofing services, but please have the decency to provide those services with some degree of care...

[asjogren]

Orwell2K;

There are issues beyond costs that devalue eBooks. Issues that I think are more significant than the cost differences.

Rights compared to paper books.

[DrDln]

I think ebook prices in general are lower than printed books. Because the production cost and shipping costs are negligible in ebooks. I don't know why Random house or any publisher will price them (electronic and print) the same.