Quote:
Originally Posted by JSWolf
If the publishers are saying that the agency model will give them a smaller cut, then why are they doing it?
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Aside from the fact that they were afraid of Amazon becoming too big and having too much negotiating power, the move gives publishers increasing amounts of control relative to consumers as well, and with that control, they can control their investment risk using long established tools and forecasting mechanisms. Windows for releases aren't good for business either (hardcover to paperback, Theater to DVD to streaming to tv), but they probably do have benefits with regards to predictability and risk control and they are definitely comfortable territory for content producers. Inertia is a powerful thing.
Before agency pricing we had a great market system in ebooks whereby there was strong voice for producers in publishers and a strong voice for consumers in retailers -- they wrangled and ultimately the resulting market had a sense of perspective and worked effectively. Agency cut off the consumer voice, and now everyone will suffer (at least until the particular retailer that stabbed consumers in the back is capable of turning around and stabbing publishers in the back too), but only as compared to what WOULD HAVE been if agency didn't happen. This lets anyone basically ignore the lost revenue -- it isn't as if there's a major non-agency cabal of publishers demonstrating the old model results in better profits. The move also slows down the digital revolution that content producers of every kind are afraid of and protects the familiar analog forms that they are comfortable with and understand better.