Quote:
Originally Posted by Kali Yuga
Is that a joke?
Random House is the largest publisher in the US; at the time of the switch -- early 2011 -- B&N was losing sales, closing stores, and selling puppets just to stay afloat. B&N was in no position to put pressure on RH.
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http://dearauthor.com/features/indus...mes-important/
When Random House refused to move to Agency, David Shanks of Penguin went to Barnes & Noble
“I would hope that [Barnes & Noble] would be equally brutal to Publishers who have thrown in with your competition [Amazon] with obvious disdain for your welfare.” B&N continued to promote RH titles and so Shanks went back to B&N.
”Following this contact, B&N’s management decided not to feature Random House in any future advertising.”
Random House eventually caves.
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One of the biggest beneficiaries of agency pricing is Barnes and Noble. They no longer have to compete with Amazon on price.
The ebooks prices are the same on B&N and Amazon for the Agency Five. With wholesale, B&N will have to offer discount to stay competitive. This will eat into their margin but the customers will get a better deal.
Authors lost a lot of money under agency pricing.
"He quoted a CEO who estimated that $100 million was the aggregate hit to profits in a year."