Quote:
Originally Posted by Kali Yuga
The agency model, in many ways, makes sense for ebooks. It's the same deal Amazon offers to self-published authors and small publishers who put out their work directly through Amazon's DTP. Scribd and most other self-publishing ebook sites use the exact same concept: publisher (which may or may not be the author) sets the price, the retailer takes a cut.
Also, the agency model is actually not going to result in a horrifying permanent establishment of a $15-per-ebook price. You're only paying more for new ebooks -- i.e. book price is based on demand, as it ought to be. When the demand lowers (e.g. 6-12 months after publication), so will the price; there will be lots of ebooks at $10 or less.
Many people routinely proclaim that electronic and paper sales are not the same. When the system actually puts that into effect, of course, people throw fits. Go figure.  |
"Promotions, Discounts and Most Loyalty Programs Go Away
With agency, the price is the price. We lose most of our ability to issue coupons, promotions, special discounts, kickbacks, buy-X-get-one-free."
http://blog.kobobooks.com/2010/03/29...like-its-9-99/
The agency model discriminates against the small players.
Looking at who has adopted the model vs those who are currently embargoed.
Adopt: Sony, B&N, Amazon, Apple
Embargo: BoB, FW, Deisel
All of the embargoed players rely on Customer Loyalty programs to drive sales. As described in the Kobo blog, the agency model discriminates against customer loyalty programs.
By curtailing the business model of some retailers, the agency model hurts those retailer's ability to compete in the marketplace, and hurts my ability, as a consumer, to obtain a competitive price. All of the currently embargoed retailers rely on Customer Loyalty programs. None of the major players do.
Not only does the new model affect their own books, it also impacts the sales of other publishers. By restricting the Customer Loyalty programs, I can no longer find saving by combining a purchase from one of "The 5" with a purchase from an independent publisher. This hurts my ability, as a consumer, to obtain the lowest possible price for aggregate purchases. It also forces the smaller retailers to abandon a proven sales model that competes with the likes of Amazon and B&N. Fictionwise has already discontinued their Buywise Club membership.