If you’re involved in the book industry in any form you might have heard recently about a little stoush between the behemoth US online retailer Amazon and US publisher Macmillan over the matter of ebook prices.
In a nutshell:
*Amazon has been selling many ebooks (in its Kindle format) for US$9.99 for a while now (buying the books from publishers at about 50% of the equivalent print edition and making their profits from selling the Kindle ereader device you need to access them).
*Because Amazon isn’t the only big cheese talking ebook sales anymore (Hi Apple! Hi iBooks! Hi agency model!), Macmillan decided it had something of an advantage and tried to enforce new pricing terms…
*In response, Amazon removed the ‘buy’ buttons from Macmillan’s titles.
*Many booksellers were happy at Macmillan’s stance (because who wants consumers getting the mistaken idea that you can sell books—in any format—for less than they cost to produce?)
*But many customers were peeved (because who wants to believe they should pay a price for a book that reflects the actual cost of production?)
*After a tense weekend and some negotiating, Amazon agreed to the new ‘agency model’ terms demanded by Macmillan and started selling Macmillan titles again—but this time at prices decided by Macmillan.
*(Of course, there’s some worry this might be…. well, kind of anti-competitive.)
Why is this so important? Well, as the world comes to terms with ebooks, the issue of ebook pricing is a concern for publishers, to say the least.
The good news at yesterday’s digital publishing symposium held at the State Library of Victoria and attended by all sorts of publishing folk, came from Michael Tamblyn, vice-president of content, sales and marketing at ebook distributor Kobo (which recently partnered with REDgroup retail and will be providing ebooks for Borders, Angus & Robertson and New Zealand’s Whitcoulls stores by May). Ebook readers WILL pay more than Amazon’s $9.99 price-point for a title, he said. (more…)












