[ProfCrash]

Originally Posted by Kali Yuga

They already have started to adjust. That's why they pushed for agency pricing.

The wholesale model treats ebooks like they are paper books, a concept that doesn't make sense. The self-publishing outlets all use an agency model -- author/self-publisher sets the retail price and the retailer gets a percentage.

By the publisher setting the price, they can also reflect the normal course of economic affairs with demand-based pricing. The more demand for a book (e.g. when it first comes out), the higher the price. As demand falls, you lower the price. Normally this is done with the hardcover/paperback release schedule (hint: hardcovers don't cost an extra $5-10 to make per copy).

In addition, they are dealing with the legal issues of backlist titles; they stopped windowing titles; they're cutting loose underperforming midlist authors; they're not wasting time with the hordes of unsolicited manuscripts; they're offering deals to self-published authors who make good.

The desire to counter Amazon doesn't come from a decision to "hold onto old business models." It clearly comes from an interest in preventing Amazon from establishing a monopoly in ebooks, which is undoubtedly where things were headed before the iPad -- and where they are now headed again. Nor was there any indication whatsoever that in the publishers' private discussions of "we need to nip this ebook thing in the bud" or "to heck with digital, we are sticking with paper."

I mean, really, what year do you think it is? 2009?



They aren't protecting hardcover prices, they're protecting the value of the product they sell, and adjusting prices in accordance with demand.

And somehow, despite higher prices, ebook sales have gone through the roof over the last 2 years, and piracy doesn't seem to be slowing those sales. hmmmm



Those devices already existed. The only new entrant was the iPad, and since that was introduced the Sony devices have gotten sidelined.

It's also pretty clear that Apple would not have taken as much market share as they have if they didn't match Amazon on price, since it's almost as easy to use the Kindle app as to use the iBooks app.



Authors don't usually recover their advances. E.g. an author gets a $50k advance, the book sells enough for the author to get $25k in royalties. Cutting advances and increasing royalties means a smaller payment for the authors.



Yup. Those advances are significantly larger than 10 years ago.

Hocking got a $2 million advance. How big of an advance would she have gotten if she sent unsolicited manuscripts to a publisher?

The emails and conversations included in the inditment (sp) make it clear that they wanted higher e-book prices so that people would not think that hardback books are over priced. The Agency Model was an attempt to drive up e-book prices, which they were making more money on under the wholesale market, so that the paper books were protected. They were protecting a format that is being pushed to the side because people do not value it as much. That is not adjusting to the new market, that is protecting the old market. It is an attempt to put their heads in the sand and pretend that the changes that are happening are not happening.

Yes, people have paid more for ebooks but there are complaints. It could also be that the increase in e-book reader users. Perhaps that number would be higher if prices had been lower. The introduction of the Nook Touch and Kindle Touch led to millions of new users.

The product that they sell will make them money in a different way. They have to adjust their thinking and their business model. The current business model does not work for e-books.