Quote:
Originally Posted by stonetools
People were battling to the death on prices before agency pricing-and Amazon's competitors were dying. Amazon had 90 per cent of the ebook market,remember? Now they are down to 60 per cent.
Upstart companies? You mean like Rocketbooks? They declared bankruptcy. Borders went bankrupt also. Fictionwise-everybody's favorite-ended up being bought up by B&N. Kobo was bought up by Rakuten.
Every single business analyst I've read thinks that Amazon will win big and regain monopoly control if agency pricing goes. No one thinks that some upstart young comany will be able to come aong and compete with Amazon when that happens .
Business analysts agree that prices will fall short term-until Amazon becomes the one big pipe.
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You're ignoring that Amazon
1) Uses DRM to lock people into their ecosystem
2) Is cut-throat about keeping prices to the consumer low
OF COURSE they're going to win big with those two caveats. I don't purchase ebooks from Amazon, but I admire the way they have created an outstanding experience, and coupled it with (relatively) reasonable prices.
But the day they get too greedy and raise prices too far, a whippersnapper company will demolish them. The barriers to entry are lower than they've ever been for service companies. It takes less time, and capital, to create a storefront on the internet than at any time in the past.