The 3 major publishers that settled are: Simon & Schuster, Hachette and HarperCollins
http://paidcontent.org/2012/04/16/wh...r-readers-now/
No changes until June at the earliest
Quote:
Simon & Schuster, Hachette and HarperCollins agreed to settle with Justice. If the settlement is approved — following a 60-day comment period — those three publishers must terminate existing agreements with Apple’s iBookstore within seven days. In addition, as the Competitive Impact Statement on the settlement explains, the three settling publishers must terminate contracts with other retailers (like Amazon and Barnes & Noble) that contain any “restrictions on an e-book retailer’s ability to set the retail price of any e-book” and any most favored nation clauses. Those MFN clauses — which can be found in all agency publishers’ contracts with retailers, not just the contracts with Apple — state that no other retailer can charge a lower e-book price.
Publishers must terminate the contracts with retailers other than Apple “as soon as each contract permits” — i.e., when the contract expires — but the retailers also have the option to terminate the contracts “on just 30 days notice.” After the original contracts are terminated, the settling publishers may enter into new agreements with retailers (including Apple).
Under those new agreements, for the next two years, retailers may set, change or lower e-book prices and may offer discounts and other promotions “to encourage consumers to purchase one or more e-books.”
After two years, the settling publishers may once again enter into agency pricing agreements that restrict retailers from setting, changing, or lowering e-book prices. However, price MFN clauses are prohibited for five years.
|
Simon & Schuster, Hachette and HarperCollins agreed to settle on April 11, 2012.
+ 60-day comment period
=
June 10, 2012 (at the earliest) when the settlement is approved.
The big question is that will Random House switch back from agency model to wholesale.
Random house will make more money from wholesale. In addition, Random House will be at a disadvantage if best sellers from Simon & Schuster, Hachette and HarperCollins are discounted to $9.99 while Random House best sellers continue at $12.99 or $14.99. If you're Random House CEO, what would you do?
In addition, the publishers that didn't settle (Penguin, Macmillan) will also be at the same disadvantage. Less money on agency pricing and higher prices on best sellers ebooks.
--------------------something to ponder-----------------
Big 6 = 60% of the ebook market
the other 2000 publishers + self-publishers = 40% of the ebook market
if Random House switch back to wholesale, it will be a lost cause for Penguin and Macmillian to fight on. By themselves, Penguin and Macmillian make up about 17-18% of the market. The other 82% will all be on wholesale.
If Random House sticks with agency pricing, it will be about 30% under agency pricing and 70% wholesale. Random House is the biggest publisher in term of market share.