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Old 08-08-2010, 04:43 PM   #16
Ben Thornton
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There is no "agency agreement" in the UK (I believe it would be illegal under UK law); Amazon are free to set whatever price they wish for eBooks.
Thanks. So, doesn't that mean that Amazon can do what they seemed to be attempting in the US before the publishers stamped on it - i.e. setting up an ebooks business with a pricing structure that met people's expectations (i.e. always below the cheapest paper price etc.)? This looks like what they're attempting - and a Good Thing too, I say
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Old 08-08-2010, 04:47 PM   #17
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If that were the case, wouldn't you expect Apple's book prices to be lower than Amazon's? They aren't.
I would, but I don't have access to iBooks to verify. But, even if Apple didn't manage to seal the deal on lower prices for themselves I have no doubt at all that they had a hand in bringing about agency pricing the in US.
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Old 08-08-2010, 04:54 PM   #18
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The rumours that I remember from that time were that Amazon was making a loss on the 9.99 titles in order to build a business, and that Apple neither wanted to stand that same loss, nor to be more expensive than their competitor - and so cooked up the agency model with the publishers. I have no idea whether this is true, but I remember reading it.
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Old 08-08-2010, 04:55 PM   #19
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Well, I certainly don't have any "inside knowledge" on the matter but, as I said, I really don't see what Apple would gain. When you compare Amazon's ebook prices in the UK (where there is no agency pricing) with those in the US (where there is), it's obvious that US prices are dramatically higher. The result of that is that I buy my ebooks from Amazon, and not from Apple. If that is some sinister conspiracy on Apple's part, it seems like a rather strange one!
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Old 08-08-2010, 05:12 PM   #20
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Well, I certainly don't have any "inside knowledge" on the matter but, as I said, I really don't see what Apple would gain. When you compare Amazon's ebook prices in the UK (where there is no agency pricing) with those in the US (where there is), it's obvious that US prices are dramatically higher. The result of that is that I buy my ebooks from Amazon, and not from Apple. If that is some sinister conspiracy on Apple's part, it seems like a rather strange one!
Well, you don't have to deal with agency pricing like I do, so naturally your prices are much lower. Apple gained from all this by forcing, through the Price Fix 5, Amazon to sell their ebooks for higher prices, this is a direct benefit to Apple regardless of whatever deal of their own they worked out with publishers.
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Old 08-08-2010, 05:43 PM   #21
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What are you talking about? Apple aren't responsible for "Agency" pricing.
Yes, Apple is responsible for the agency pricing. Part of the deal with Apple is that they are not allowed to be undersold. That is the mai reason prices are high everywhere. If Apple is selling an Agency eBook for $12.99, then no other eBook store is allowed to sell it for any less. And we've already seen examples of how the agency 5 is a bunch of liars. We've already seen pBooks go from a more expensive hardcover to a less expensive non-hardcover and the eBook price has not changed to reflect this.

APPLE IS AT FAULT!
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Old 08-08-2010, 07:01 PM   #22
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(snipped for length) If Apple is selling an Agency eBook for $12.99, then no other eBook store is allowed to sell it for any less. And we've already seen examples of how the agency 5 is a bunch of liars. We've already seen pBooks go from a more expensive hardcover to a less expensive non-hardcover and the eBook price has not changed to reflect this.

APPLE IS AT FAULT!
In my opinion there is enough blame to go around. I am not happy with Apple over it, but I'm at least as unhappy with the Agency 5.

And as long as the e-book price costs more than the cheapest paper price, I will not be buying the e-book. I am not a sucker and I won't be treated like one.

If I remember to check back later, and the prices come down, great. If not--lost sale. Oh well. There are plenty of free books out there.
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Old 08-08-2010, 07:10 PM   #23
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Everything I've read clearly says that Apple had a hand in bringing about the agency pricing model and intends to benefit from it.
And everything I have read says that also. It was because Apple was so big that the publishers could get leverage to force a change in the contracts with Amazon.
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Old 08-08-2010, 07:12 PM   #24
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Well, I certainly don't have any "inside knowledge" on the matter but, as I said, I really don't see what Apple would gain. When you compare Amazon's ebook prices in the UK (where there is no agency pricing) with those in the US (where there is), it's obvious that US prices are dramatically higher. The result of that is that I buy my ebooks from Amazon, and not from Apple. If that is some sinister conspiracy on Apple's part, it seems like a rather strange one!
The gain is to have the same price. Apple makes money selling hardware. But they will sell less hardware if the price for buying books from Apple is much higher than buying books from Amazon.
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Old 08-08-2010, 07:17 PM   #25
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It will be interesting to compare the Apple vs. Amazon situation in the US and UK after 6 months to see whether there has been a different shift in their relative fortunes (assuming that Amazon remains cheaper than iBooks in the UK, and not so in the US). I can't see it being that much of a big deal for most people in deciding whether to get an ipad or not.
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