MobileRead Forums - View Single Post - Some thoughts on e-book pricing at the Sony Connect store

Bob Russell · 11-12-2006, 10:00 PM

After a little digging, it's clear that there are some patterns which seem to characterize how the pricing generally works at the Sony Connect online e-book store. Some of thie following information was also gathered from general publishing information and Sony sources. Hopefully, while it may not satisfy everyone hoping for lower e-book prices, this information will help take some of the mystery out of the pricing equation.

First of all, let's consider how "List Prices" work with the publishers – it's a bit of a tricky business. For example, when a new hardcover comes out, most are roughly $25-$30. Each major publisher has a different strategy for discounting the list price to Sony Connect. Remember that it's basically the publisher that sets the pricing. Simon & Schuster seems to be the most aggressive, sometimes discounting the list price up to 45% from the print list price. That means that Sony is giving maybe 20% off the list price as a further discount. In other words, a book with a hardback list price of $25 might have an e-book list price of $15, and then Sony Connect might further discount that to about $12.

Sony gives a portion of the sale back to the publisher, and 20% back to the consumer to try and keep the price down as much as possible and make a business. But until the publishers get their list prices down further, there's not going to be any significant changes in e-book pricing from a retailer to the consumer. Bundle pricing helps, but doesn't solve pricing across the board, which still can have a tendency to appear too high to the average consumer.

Here are some examples:

* State of Denial by Bob Woodward (Simon & Schuster). Print List = $30. eBook List = $16.99 (45% discount). Sony Connect Price = $13.59.

* The Mission Song by John Le Carre (Hachette – formerly Time Warner). Print List=$26.99. eBook List=$17.99 (33% discount). Sony Connect Price = $14.39.

* The Audacity of Hope by Barack Obama (Random House). Print List=$25. eBook List = $17.95 (28% discount). Sony Connect Price = $14.36.

* Freakonomics (Rev Ed) by Stephen Levitt (Harper Collins). Print List=$27.95. eBook List= $19.95 (23% discount). Sony Connect Price = $15.96.

Then there are other major publishers like Penguin and Holtzbrinck who do not discount at all between their print and e-book list prices. Over time, as the e-book market heats up, hopefully there will be some more competition for customers that will move other publishers towards and beyond the more aggressive e-book pricing discounts.

As we have heard from many sources, attractive pricing in the the e-book market is critical for the market to expand. Especially with the current DRM restrictions and issues with format compatibility. Fortunately, the Sony Reader has really make a big step forward for the reading device side of the equation, and Connect offers competitive pricing for the e-books. They still have a way to go to resolve pricing anomolies, increase available titles, and improve the store functionality, but it's encouraging to see this significant step forward. With increased success will come increased visibility of the e-book market, more titles and more reasons for publishers to reconsider pricing to attract more customers.

11-12-2006, 10:00 PM	#1
Bob Russell Recovering Gadget Addict Posts: 5,381 Karma: 676161 Join Date: May 2004 Location: Pittsburgh, PA Device: iPad	Some thoughts on e-book pricing at the Sony Connect store After a little digging, it's clear that there are some patterns which seem to characterize how the pricing generally works at the Sony Connect online e-book store. Some of thie following information was also gathered from general publishing information and Sony sources. Hopefully, while it may not satisfy everyone hoping for lower e-book prices, this information will help take some of the mystery out of the pricing equation. First of all, let's consider how "List Prices" work with the publishers – it's a bit of a tricky business. For example, when a new hardcover comes out, most are roughly $25-$30. Each major publisher has a different strategy for discounting the list price to Sony Connect. Remember that it's basically the publisher that sets the pricing. Simon & Schuster seems to be the most aggressive, sometimes discounting the list price up to 45% from the print list price. That means that Sony is giving maybe 20% off the list price as a further discount. In other words, a book with a hardback list price of $25 might have an e-book list price of $15, and then Sony Connect might further discount that to about $12. Sony gives a portion of the sale back to the publisher, and 20% back to the consumer to try and keep the price down as much as possible and make a business. But until the publishers get their list prices down further, there's not going to be any significant changes in e-book pricing from a retailer to the consumer. Bundle pricing helps, but doesn't solve pricing across the board, which still can have a tendency to appear too high to the average consumer. Here are some examples: * State of Denial by Bob Woodward (Simon & Schuster). Print List = $30. eBook List = $16.99 (45% discount). Sony Connect Price = $13.59. * The Mission Song by John Le Carre (Hachette – formerly Time Warner). Print List=$26.99. eBook List=$17.99 (33% discount). Sony Connect Price = $14.39. * The Audacity of Hope by Barack Obama (Random House). Print List=$25. eBook List = $17.95 (28% discount). Sony Connect Price = $14.36. * Freakonomics (Rev Ed) by Stephen Levitt (Harper Collins). Print List=$27.95. eBook List= $19.95 (23% discount). Sony Connect Price = $15.96. Then there are other major publishers like Penguin and Holtzbrinck who do not discount at all between their print and e-book list prices. Over time, as the e-book market heats up, hopefully there will be some more competition for customers that will move other publishers towards and beyond the more aggressive e-book pricing discounts. As we have heard from many sources, attractive pricing in the the e-book market is critical for the market to expand. Especially with the current DRM restrictions and issues with format compatibility. Fortunately, the Sony Reader has really make a big step forward for the reading device side of the equation, and Connect offers competitive pricing for the e-books. They still have a way to go to resolve pricing anomolies, increase available titles, and improve the store functionality, but it's encouraging to see this significant step forward. With increased success will come increased visibility of the e-book market, more titles and more reasons for publishers to reconsider pricing to attract more customers.