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Originally Posted by Graham
I thought the Agency pricing model meant that the publishers already get to keep 70% regardless of the seller?
i.e. that they currently get to keep 70% selling through Amazon, for example?
Unless I've got this wrong, the publishers wouldn't get any more selling through the iBookstore than through any other retailer.
The way they could potentially get more is by bypassing in app purchases and selling directly with a web app, but they'd have to have their own payment handling and download servers in place and deal with customer queries and refunds, which would eat into that 30% considerably.
What's more, they'd do this in addition to using the other retailers. Unless they wanted to go no-DRM they'd still want to be on the Kindle as well as in ePub, for example.
Graham
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This is Mike Shatzkin explains it:
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e immediate consequence of Apple enforcing this policy of theirs was to drive the direct-to-our-store connection from the Kindle, Nook, Kobo, and Google apps. Because those retailers only get 30% margin from the publishers, they can’t afford to give 30% to Apple for the privilege of in-app selling.
But publishers don’t have that margin problem. They already pay 30% for their sales, and if they put their own apps up with sales enabled through them, they’d only be paying what they already are to a retailer for the privilege. So apps for authors or genres or series of any kind could be offered as free downloads through the App Store with direct-purchase buttons inside. These could send you to the iBookstore, if the right kind of landing environment could be created, or to the publisher’s own landing page where sales commissionable to Apple could be made.
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The publishers could sell direct to consumers on the same terms thyat they currently have with Amazon and the other booksellers, IOW. Why would the publishers do this? Shatzkin again:
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If there is yet another channel available to publishers at the same cost as the existing channels, it would be appealing. And, frankly, anything that dilutes the Amazon share is also appealing to most publishers.
I'm always open to learning something new or getting an additional insight, as I hope the post made clear. However, I don't think that whatever might be wrong with my logic has been pointed out to me yet.
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