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Steve Jobs has made a deal with Rupert Murdoch, which may end the days of cheap e-books from Amazon.  (Source: Reuters)
Enjoy $9.99 bestsellers while you can, following the Macmillan concession, everyone wants more out of Amazon

As we predicted, the recent concession by Amazon.com in terms of electronic book pricing to “big six” publisher Macmillan opened the floodgates leading other top publishers to demand more.  

Amazon.com's electronics books have many downsides -- the potential to lose your book eventually due to compatibility, ownership concerns, and dependency on battery life of the device being used.  They also have significant upsides -- a lot of classic works are available for free, you can transport 1,000s of books in a single bag and it's much easier to locate your books.  However, the biggest advantage of all was pricing.  Whereas hardcover best sellers typically retail for $15 to $25 on Amazon.com, best-sellers have been available in e-book form for the bargain rate of $9.99.

Macmillan recently won in a battle with Amazon to raise those prices.  Amazon has agreed to raise the price of Macmillan 
New York Times bestsellers to $12.99, or in most cases, $14.99.  

Now Rupert Murdoch, the media mogul who owns HarperCollins books -- another big six publisher -- is demanding a price bump of his own.  In a conference call Tuesday, he complained, "We don't like the Amazon model of selling everything at $9.99.  They pay us the wholesale price of $14 or whatever we charge.  But I think it really devalues books and it hurts all the retailers of the hard cover books."

Murdoch commented that he was looking to renegotiate News Corp's deal with Amazon and says that Amazon has responded that it is "ready to sit down with us again."

HarperCollins Books publishes such bestselling authors as Michael Crichton and Janet Evanovich.

Besides the Macmillan concession, another factor driving up prices is new competition from Apple.  Apple recently debuted its iPad tablet computer.  While its name has been the bunt of many jokes, curiosity about the new device is high.  Apple looks to use the device to become a major competitor to Amazon and second-place Sony in the electronic books arena.  

Apple already has a deal in place with Murdoch.  He comments, "Apple, in its agreement with us, which is not been disclosed in detail, does allow for a variety of slightly higher prices."

It appears that the final blows are being struck that will ultimately spell the end of cheap e-books.  Will that hurt the format's popularity?  Or will customers stomach the changes?  That remains to be seen in coming months.



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RE: Get used to paying for things.
By mellomonk on 2/3/2010 11:55:51 AM , Rating: 3
Maybe. But most consumers are sheep and the content providers have been pretty good at herding for a long long time.


RE: Get used to paying for things.
By cmdrdredd on 2/3/2010 5:01:52 PM , Rating: 2
I don't think I've ever once bought a book the day, week, or even month of release. Exception for Harry Potter.

To be fair here, I don't care if it's $15 instead of $10. I still only buy a handfull of books a year, like less than 5 maybe. So it's not like I'm suddenly going to be spending thousands or even hundreds more on my ebooks. It's not like movies where I buy many and can watch them multiple times. I read a book once, enjoy it or not, then I'm done. Same with magazines or Newspapers. For me it's read once and toss (or keep) and that's that. So honestly I don't see the big deal. The real problem is that none of the publishers have offered their published works to the consumer and have relied on Amazon, Sony and others to distribute the ebook version. Now Apple steps in and I know exactly what happened. Apple contacted publishers trying to sign them exclusively, that's right Apple wanted to monopolize everything. "Sell on the iPad store and not Amazon and we'll charge more for your books and we'll all make more money." So what happens? They approach Amazon and strong arm them "take down our works or you will charge your customers the same as Apple is charging! We want more money!" So Amazon has no choice if they want to continue their business.

Have no fear, Amazon is HUGE. This won't affect the Kindle, it isn't dieing or going anywhere. eInk is infinately better for reading for long periods of time than any LCD screen, superior battery life, and better price point for the device. Plus, it's more convenient in size. I'm not worried, and neither should you be. In the end you'll see bookstores disappear. Waldenbooks and Borders around my area are already gone.


By cmdrdredd on 2/3/2010 5:05:00 PM , Rating: 2
Oh and when Steve Jobs finally dies from cancer...what then? Apple is dead, period. Jobs is Apple and if it doesn't have his face on it at the keynote telling all the sheep how "magical" it is and how "$799 is a steal!!! BUY 4!" then it won't do well. Actually, I don't think the iPad will do well anyway.


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