Quote:
Originally Posted by starrigger
I've now read the letter from the Macmillan rep. So I have to ask, why is the deal they offered Apple ludicrous? Unless you think Apple should get a bigger cut.
I'm not crazy about ebooks being priced at $15 when a hardcover is published (though I've seen many listed for more), but I also can't say that they're wrong to believe that cheap ebook prices initially will endanger hardcover sales. I'm not saying they're right, but I'm not sure they're wrong, either. And hardcover sales are important to books making a profit.
I also dislike the idea of "windowing." But is this scenario so bad :
1. Hardcover published at $25, simultaneous ebook release at Apple and whoever else took that deal for $15.
2. Six months later, ebook release at Amazon and those who took the other deal for $10.
3. A year later, paperback is published, and ebook prices go down everywhere at the same time.
That could be how it works, if Amazon took one of the options offered. Granted, it wouldn't allow Amazon to undercut everyone else on initial publication. But they'd still be selling the treebooks, which remain profitable for them, and they'd be on a level playing field with others for the ebooks.
Too much of this fight is about who gets control. Macmillan wants to control prices, Amazon wants to control the whole ebook market. I'm not very happy with either one of them right now. This fight is too much like two dinosaurs crashing into each other, while the other dinosaurs stand by watching.
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You make some good points--but I think Amazon doesn't want to hand over pricing control to the publishers. That would then take away some of their opportunity to be competitive, offer loss leaders, deals and so on. If they make this deal with Macmillan (and they may in the end) they will have to make the same deal with all the other publishers. Again, they'll be giving up some of their competitive edge--and possibly losing sales if people decide they won't buy ebooks in the 15 dollar range.