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Old 06-03-2012, 03:33 PM   #24
stonetools
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Quote:
Originally Posted by Top100EbooksRank View Post
What is the time frame for the "short-term" that you have in mind?
I could see RH signing 1 year "whole sale" type contracts with book stores after the current ones expire , then going back to agency after the settlement period expires.
I think a lot will depend on how fast Amazon expands market share and what terms Amazon is going to offer next contract. If Amazon expands to say, 75-80 percent, then the contract expires, Amazon would be in a position to put the squeeze on. "Sell to me at less than $9.99 per unit ( so I can make money on margin) or instantly lose 75-80 per cent of your ebook market plus all your print sales through us. " At that point we'll see if the RH negotiator has the balls the Macmillan CEO John Sargent has.
All of this is to say that we just don't know what RH will do short term (I doubt RH itself knows).
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