Quote:
Originally Posted by ottdmk
Amazon is most definitely not a monopoly. However, before Apple convinced the publishers to move to an Agency pricing model for ebooks, Amazon was definitely in danger of becoming a monopsony in the ebook space.
Amazon's entire business model is based on increasing their market share until there is basically no-one else left in the market. Once they become the only market (or, the only market that really counts), they are able to extract price concessions from their suppliers. I believe Wal-Mart has followed a similar strategy for decades. (In a wholesale business model, retailers are the market as far as suppliers are concerned.) |
Before Apple and the price fix six got together, there were more eBook stores. I did buy a lot of eBooks from Fictionwise and Books-on-Board. Now that Apple and the price fix six did their dirty deed, they've eliminated these stores so there is less competition to Amazon. They did the opposite to what they were trying to do.