Quote:
Originally Posted by pwalker8
And sometimes you don't make Jack and go out of business, which is what happened to Fictionwise and BooksOnBoard. Fictionwise sold itself to B&N back in 2009, before the Agency pricing model was introduced in 2010. The Buywise Club, i.e. Fictionwise's discount business model, was actually discontinued in March 2010.
Getting cheap books is great, except that if it's not a sustainable business model, then it goes out of business. Many companies have found that playing the discount game and the race to the bottom tends to be an unsustainable business model. You are basically trying to survive on a very narrow profit margin, which means anytime there is a down turn, you go belly up. Anyone remember what else happened in 2009? Big economic downturn.
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Sorry, but I'm going to say you're very much wrong here. Fictionwise was doing rather well. Their business model was based on being able to give discounts and they had a club you bought into to get even more discounts. When Agency came into being, Fictionwise's business model was unable to be kept going. It required being able to give discounts. When that was taken away, they lost out big time. BooksOnBoard also relied on discounts. And again, that was taken away.
Both where doing well before agency. After, not so well. So yes, Apple and the price fix five did put both companies out of business.