Quote:
Originally Posted by Cinisajoy
How did Amazon lose?
They still sell those books.
The companies came to an agreement.
Amazon now puts on every big 5 ebook "the price was set by the publisher".
That is in the price box.
A lose would have been if the Big 5 had pulled their books.
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Amazon wants wholesale for ebook.
Big 5 Publishers wants agency pricing.
The winner is the one that got what he/she wants. Amazon lost since they didn't get what they want. The Big 5 Publishers did.
Why Amazon would want wholesale for ebook even though it is not as profitable as agency pricing ebook?
Market share and happy customers. Expensive ebook prices = not happy customers.
Also, Amazon wants ebook to be grow. High prices will put a stop to that growth.
Also, with the "PRICES THE SAME" everywhere for Big 5 Publishers ebooks, Amazon doesn't have a pricing advantage over Nook or Apple.
For publishers, why would they want agency pricing even though wholesale is MUCH MORE PROFITABLE for them?
They want to put a stop to ebook growth to protect their print business. Higher ebook prices will mean some customers will go to B&N brick and mortar store instead to buy the hardcover/paperback.