Quote:
Originally Posted by Andrew H.
Sales may have been higher without agency. Although *profits* may not have been higher, and that's what really matters. But my main point in noting that sales have tripled is to show that the industry is not "in crisis" or losing sales due to angry consumers. Whether sales would have quintupled without agency pricing is just speculation...and, again, it ignores profit.
They don't care because people are still buying like crazy.
|
Publishers are making less money with the agency model.
Old model: $25 hardback and ebook, sell it to the retailer for $12.50. Retailer sells it for the price of their choice. Publisher revenue: $12.50.
Agency model: $25 hardback, ebook sells for $14.99. (I think that's the max allowed ebook price for a $25 hardback according to the pricing scale published long ago.) Retailer keeps 30%; Publisher revenue: $10.49.
The big winner here are the ebook retailers. For a $9.99 ebook new release under the old model, they're probably losing money. They cannot lose money on an agency model ebook.