Tag Archives: eBook Price

Ebook Pricing War Between Apple and Amazon – Who Will Win Publishers or Amazon

As we all know book publishing industry is going through one of the biggest industry defining change in last 100+ years. When the industry seemed all ready to go ahead with the ebooks (with Amazon successfully launching and selling kindle and kindle books) Apple decide to disrupt the party with its announcement of launch of iBook Store through iPad and by signing Agency model (a pricing mode were publishers decide at what price they want to sell their books to the end users contrary to the normal distribution deal that publishers had with Amazon where publishers sell these books to Amzon at normal discount on list price and Amazon can sell it to publisher at whatever price) deal with Top 5 publishers (all the top except Random House)

The ebook pricing model is going through an interesting time with Apple trying to talk to publisher (both small and big) to go for agency model (which means 70% for publisher & 30%  for retailer split) and get an assurance that they will not sell the same book at a lower price through any other retailer (read Amazon). Amazon on the other hand has made it clear that it is not going to sign Agency model deal with any one except the Top 5 Apple publishers. This has left Publishers in a dilemma.If they go for Agency model with Apple they will not be able to sell through Amazon because Apple deal will not allow them to sell the same ebook at a lower price anywhere else and if they do not sell through Apple then they are increasing the power of Amazon even more.

The solution to this stalemate is

1. Apple becomes more flexible and decides to have a mix of both Agency and normal wholesale model (offer similar revenue split for agency and normal wholesale model i.e. 70%/30%)

2. or Amazon is fine with Publishers doing Agency agreement for ebooks sales.

Next few months are going to be really interesting as Amazon will try its best to use its clout in print books to arm twist mid and small publishers in staying away from Agency model and Apple will try its best to make its ebook offering best by having as many publishers in the program as possible. The third big player in this game is Google. It will interesting to see which way will Google go with its Google Editions offering.

Lets wait and watch and enjoy the game. My bets are on Amazon 🙂


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Filed under Book Retailers, Ebook Readers, Ebooks, Publishers & Authors

iPad eBooks Priced at $9.99

Interesting news from techcrunch

The NYT has a report on ebook pricing for the iPad, saying that Apple may charge $9.99 for popular titles, just like everyone else in the free world.

While most prices will be higher – it’s an iPad! Why go slumming? – popular books can hit the $9.99 if need be. Apple takes 30 percent of the sale while the publishers take 70 percent.

I’m all for more expensive ebooks. The 99 cent song has essentially turned the music business into a freak out fest and the publishing industry is even less prepare for the volcano that’s about to erupt right in the middle of their industry.

I’d say $12.99 is a good price for an ebook. At that price Apple gets $4 and the publisher gets about $8. This, in turn, gets the author 2 cents on a good day.

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Filed under Apple iPad, Ebook Readers, Ebooks

Why Consumers Should Not Pay More For An eBook

“People who can afford an ereading device can afford all proposed ebook prices.” – That was Michael Cader’s advice to the publishing industry.

What Cader is trying to say here is that consumers are unreasonable in saying that they cannot afford higher prices for ebooks. And where does he derive this from? – well! from the fact that if the same consumers can afford an ebook device ranging anywhere betwen $300-$500 why can’t they afford a $3-$5 hike in the ebook prices. I don’t at all believe in this theory because the truth is that there are a huge set of consumers who actually bought a Kindle or a Nook just to save money over the long term.

Moreover, in my opinion what consumers are paying for an ebook device versus what they are wiling to pay for an ebook is like comparing apples to oranges. (It’s like saying since I bought an expensive book shelf I ave to buy expensive books as well – it doesn’t work that way)  But let’s play the devil’s advocate here and see how the other side looks.

Even if a consumer can afford a higher price for a digital book, I don’t see any reason why he should. I think most of the value of the e-book format comes primarily from the device and not the publisher. Accessibility, reading experience, ability to share across multiple registered devices, mobility- all of it is provided by the device and the retailer’s back end (Amazon, B&N). Moreover, it is reduced overheads for the publisher. Why? – No additional content over the print version, no custom formatting required, (may be typos) no additional printing cost. So why won’t a consumer want all these cost savings to be passed on to the them?

High time publishers should actually listen to the consumers and price their ebooks with certain considerations.

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Filed under Ebook pricing, Ebooks, Uncategorized