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The thread has moved on but it should be noted that we already knew that Amazon was unlikely to be losing money selling best-sellers for $9.99. The new price for best-sellers that the Agency group wanted was $12.99. We already knew that 30% of the sales price went to the retailer. If we assume the agency model's new price for releases:
12.99 minus (30% of 12.99) = 9.093. Even under the agency model's higher prices Amazon would earn $0.897 per book if they were allowed to sell for $9.99. However, Apple's profit margin would be cut by almost $3 if they had to compete with Amazon's $9.99 price.
Am I the only one that thinks the agency model was a move to both reduce Amazon's presence AND increase Apple's profit? It's hard to see how it can be seen as an altruistic attempt to help consumers.
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