Quote:
Originally Posted by Sil_liS
Amazon could afford the price (on a limited number of books) because it got a better deal from the publishers than other retailers. It used the better deal to pass the savings to the customers which increased its market share, to the point where the publishers could no longer afford to say 'take it or live it'.
But this didn't break the business model. The move to agency pricing broke the publishers' business model.
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I don't follow the logic of your assertion. How would the move to agency pricing, i.e. the publisher setting the price, break the publishers' model?
Amazon didn't get a better deal that it passed on to the consumer, it was selling a small subset of ebooks at a loss or very small profit to drive the sales of kindles and establish the ebook market. Companies do this all the time, especially if they have a good cash flow from other parts of their business.