Thread: Amazon says 'will have to capitulate and accept Macmillan's terms'
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Old 01-31-2010, 06:26 PM   #11
MikeRo
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Well, thanks Mr. Jobs.

From http://radar.oreilly.com/2010/01/ipa...ublishers.html:

Quote:
The Wall Street Journal says Apple is pushing book publishers to set two ebook price points, $12.99 and $14.99, with Apple taking its customary 30 percent cut from any sales. They key word in all this is "set." The big kahuna of ebooks, Amazon, controls its pricing. Most bestsellers are parked at $9.99, which is below what Amazon pays a publisher for a title. Amazon is subsidizing its low price point.
In addition:
Quote:
Update 1/31: Macmillan fired the first shot across Amazon's bow, which led to Amazon pulling Macmillan titles. Amazon has since backed down and reluctantly agreed to Macmillan's terms. The Wall Street Journal puts the disagreement in context:

It is expected that publishers will now seek to do business with Amazon and other e-book retailers on the same terms as with Apple. By setting their own prices, publishers would be able to eliminate discounting on Amazon and elsewhere that they believe threatens the long-term business model of publishing.

What's really interesting about this -- and kind of bizarre -- is that the binary Apple-or-Amazon thinking obscures an important point: mobile devices already offer publishers plenty of pricing options.
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