Thread: Death of the agency model?
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Old 04-06-2012, 01:11 PM   #114
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Quote:
Originally Posted by Fbone View Post
Which is why Amazon's refusing IPG's terms didn't make sense. Amazon wanted lower wholesale prices than their competitors (AKA most favored nation) and IPG said no. What risk was there to Amazon? They aren't stocking inventory.

Since there are reports of Amazon demanding and receiving better terms than other retailers now plus with the expected (temporarily) end to agency pricing, what hope does B&N, Sony, Kobo, etc have?
what will happen is thatrAmazon's market share shoots up to 90 per cent again, as Amazonn passes on thesavings to consumers.
Then the publishers will re-impose agency pricing and Amazon's share will sink back to 60 per cent . Lets hope that no retailers go bankrupt in the interim.
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