Quote:
Originally Posted by murraypaul
You are confusing "a"gency with "A"gency.
Apple's music and video are on an agency basis, because they simply act as a storefront for the content owners, and take their fixed cut. Apple do not set the prices for content, they have a set list of allowable prices, and the content owners pick which ones to apply to each item.
They are not on an "A"gency basis, because their is no most-favoured-nation clause, nothing preventing the content owners selling music and video to other retailers on different terms.
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Apple could have done this too with ebook (agency but without the most favored clause). But they didn't want to use the Itunes model for Ebook.
If they used Itunes model, there would be no DOJ lawsuit.
Right now, selling ebook is still done with agency pricing but
1) without most favored clause
2) allow retailer to discount their 30% as long as the retailer don't make a loss on the overall catalog