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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: BS
By Oregonian2 on 2/3/2010 2:24:02 PM , Rating: 2
One of the books I read recently had a list of names at the publisher's for the help they gave on the project. Had fifteen people.

You're saying those fifteen people worked for free because it was an eBook (no, none of them was a printer)? Likewise the legal and accounting departments of the publisher work for free? How about all the work those folk do for books that don't sell at all? Have the publisher shut down operations after the first failed book or distribute costs of failures onto those that succeed (like ALL other companies do with their products -- Microsoft didn't shut down with the release of BOB, it's losses were paid from the gross profits of the other products)?


RE: BS
By webstorm1 on 2/3/2010 4:27:10 PM , Rating: 2
Everyone is paid for thier work. The end result is an ebook. The ebook costs 0 dollars from the inital investment(as I said). Self-publishing means taking on all the tasks that a publisher provides. Charging $15 for 0 cost to produce ebook is greedy, and there's no way for you to apologize for it. If publishers weren't greedy, they would be happy to make the $10 that everyone was happy paying. Selling 100,000 copies at $10 is much better than 50,000 copies at $15. It's pure corporate greed, and when those 15 people lose their jobs because of it, whose fault is it going to be? The greedy folks running the publisher.


RE: BS
By Oregonian2 on 2/3/2010 6:47:27 PM , Rating: 2
Self publishing certainly is a way to have very cheap eBooks. Most self-published books that I know of were, however, worth even less.


"A lot of people pay zero for the cellphone ... That's what it's worth." -- Apple Chief Operating Officer Timothy Cook














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