Quote:
Originally Posted by stonetools
I think Apple does business on the agency model with ALL its media suppliers. The agency model is how it does business in the App Store.
With the wholesale model, you buy in lots and you ARE responsible for the unsold merchandise.
Frankly, the wholesale model doesn't really make sense for digital products-another reason why Apple favors the agency model.
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The wholesale model for ebooks didn't require buying in lots and being responsible for unsold merchandise. It had the same pricing system as wholesale for physical objects, but the objects weren't "purchased" until a sale occurred. No risk for anyone, except for the occasional chargeback.
There's no reason ebooks couldn't be run on the wholesale pricing model: author/publisher sets their cut; distributor sets the end price to whatever they like.