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The c/net article is the same disinformation that the publishing perception management teams have been trying to spread. Keep spreading the same lie through different channels and the "stupid customer" will believe it must be true. It ignores the obvious fact that they are comparing a $24.99 list price to a $12.99 list price and the fact that the $24.99 list price was artificial and unsustainable. No real reporter would regurgitate this crap but I guess if you work for c/net who is owned by CBS, who happens to own Simon & Schuster well then it doesn't matter.
How about comparing a $12.99 list price under the wholesale model to a $12.99 list price under the agency model but recognize that nobody (including B&M stores) are making a 50% margin on books. Lets base the list price on 30% instead.
Wholesale Model
List $12.99
Publisher $9.09
e-book retailer $0.90 (based on $9.99 selling price)
Agency Model
List $12.99
Publisher 9.09
e-book retailer $3.90 (based on a $12.99 price because they can' t discount)
Of course this ignores the fact that Amazon would have kept lowering the price like they've done with music. Oh wait Amazon hasn't done that with music.
Of course it ignores the fact that Amazon would have kept lowering the price like they've done with movies. Oh wait Amazon hasn't done that with movies.
Well it ignores the fact that Amazon would have acted like Apple did and keep lowering the price of music below 99 cents a song. Oh wait Apple hasn't done that either.
Well obviously Amazon would have kept lowering the price because it's an unsustainable model and they were trying to corner the market on virtual goods. Even though there is no logical reason for them to do so.
Oh well the publishers decided they had to take make less money out of the goodness of their hearts.
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