Friday, December 16, 2011

New E-Book Pricing Scheme

An interesting article appeared in The Wall Street Journal  mentioning Apple, Barnes & Nobel and Amazon.
"The problem of so-called "e-book sticker shock" is becoming a reality ever since six of the top book publishers banded together and agreed to set prices for the electronic books they sell, according to a story in The Wall Street Journal. In some cases the price for the e-version of a book is actually higher than the physical version, the article said."

"“Under the new pricing model, a $25 hardcover is often priced at $12.99 for the e-book. And because publishers receive 70% of the e-book retail price -- while retailers retain 30% -- that means publishers receive only $9.09. Publishers were willing to accept the lower profits because they felt the new arrangement preserved the value of books and encouraged other retailers to enter the e-book market. Indeed, the new arrangement means guaranteed profits on best-selling titles for retailers like Barnes & Noble Inc., which today claims about 27% of the digital books market, as well as Amazon.”"

"“I bought a Kindle when ebooks cost 9.99. Since Amazon raised the prices for ebooks, my Kindle mostly sits, unused. If I'm going to pay 15 bucks for a book, I want to be able to loan it out or give it away when I'm done with it.”"

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