Amazon and Book Publishers Reach New Deals Ahead of iBookstore Launch

[MacRumors]

The Associated Press reports that Amazon has struck new eBook deals with book publishers Simon & Schuster and HarperCollins just days before Apple's iPad and associated iBookstore launch in the U.S. The new deals are reportedly similar to other reworked Amazon contracts such as that made with Macmillan in late January that will allow for higher sale prices and more publisher control over pricing that Amazon's earlier system. The Amazon deals are also reportedly modeled on publishers' arrangements with Apple for distribution through the iBookstore.

With Apple's pricing model, some e-books will cost up to $14.99 initially -- $5 more than Amazon charges for some popular e-books -- and Apple is insisting that publishers can't sell books at a lower price through a competitor.

Apple's iBookstore is launching with titles from major publishers such as Penguin, Simon & Schuster, HarperCollins, Hachette Book Group and Macmillan. One big publisher, Random House, has not yet struck a deal with Apple.

Apple's push toward an agency model where publishers retain control over pricing is supported by many publishers who have feared that Amazon's low pricing for certain eBook content, which has even had the company selling eBooks at a loss, threatens the long-term viability of the publishing industry.

Not all publishers are convinced, however, that Apple's plans are best for the industry, as Random House is holding out as it consults with its authors agents to consider the ramifications of such a change.

Article Link: Amazon and Book Publishers Reach New Deals Ahead of iBookstore Launch

 

[Grimace]

Get on board quickly...the iPad train is rolling!

 

[macduke]

But what can we expect as far as textbook pricing on iPad?

 

[HiRez]

But what can we expect as far as textbook pricing on iPad?

Yeah, I have heard very little about this so far and it's pretty important. Also, how much will they charge for textbook updates and revisions? Is there a mechanism in the iBookstore for dealing with that? I hope a lot less than re-buying the book at full price. The iPad could be revolutionary for students, but not if the publishers are going to gouge the hell out of their customers.

 

[fishmoose]

I just wish Apple would make international deals for iBooks, really want to use an iPad as a e-reader but I can't aslong iBookstore is US only

 

[nkawtg72]

Apple charging more than other people? Who'd have thought such a thing? 50% more. Apple really are greedy little sh*ts.

you really don't understand the model do you? and why they wanted the prices set by the publishers?

 

[ruinfx]

and Apple is insisting that publishers can't sell books at a lower price through a competitor.

that doesnt pass the smell test

 

[TennisandMusic]

This is getting a bit absurd. At what point is Apple going to get nailed for anti competitive practices? How can they INSIST that no one else sells at a lower price? It's not their content. They want to control books, music and movies? And on their little crippled device? Give me a break. Time for Apple to get sued. Seriously, they have gone insane.

 

[Friscohoya]

Random House...bunch of haters!

 

[NebulaClash]

This is getting a bit absurd. At what point is Apple going to get nailed for anti competitive practices? How can they INSIST that no one else sells at a lower price?

They can get nailed when they have an illegal monopoly. Not until then.

They can insist because a publisher has the choice to do a deal with Apple or not. Those are contract terms. It's a choice, not being forced, and that's why this is legal.

If I draw up a contract with you, I can put anything I want in the contract. You then have a choice to sign or not. If you sign, it's a legal agreement we are both bound to. If you do not sign, there is no contract. And no matter how absurd my contract terms are, it's legal because nobody is forcing you to sign.

 

[GFLPraxis]

I love books. I really do. Especially classic literature, more than modern novels. But...$15 for an e-book?

$15 for what amounts to a large text document seems out of line for the medium, considering delivery costs are inconsequential (compared to printing, binding, and shipping books to stores).

A random book I picked out on the Barnes and Noble web site:

Hardcover: $29.99 retail, $19.99 online
Paperback: $7.99 retail, $7.19 online
E-book: $14.99


E-books should cost less than paperbacks I can pick up in store. >_> I would probably end up restricting myself to otherwise-expensive textbooks and the free Project Gutenberg classic literature, and by the similar-priced or cheaper paperbacks in store.

 

[Shasterball]

They can get nailed when they have an illegal monopoly. Not until then.

Not true. Price fixing is price fixing is price fixing. Doesn't matter if you have a monopoly or not. It seems like they are trying to fix prices. Seems fishy to me...

 

[NebulaClash]

Not true. Price fixing is price fixing is price fixing. Doesn't matter if you have a monopoly or not..

It's only illegal if you violate anti-trust laws. If you don't, you can engage in legal price fixing.

It legally happens all the time. Fast food places set minimum prices, and bookstores follow guidelines set by publishers, etc.

 

[Doctor Q]

As each publisher gets on board, easier and easier access to eBooks from iPads will produce more and more acceptance of eBooks over printed books. The earth will soon be overrun with (not dead) trees!

 

[NebulaClash]

I love books. I really do. Especially classic literature, more than modern novels. But...$15 for an e-book?

I agree, that's too much except for some specialty technical book that costs $50 or so.

I don't like it that ebook prices are rising this way, but I also think the market will send a corrective message in time, and prices will fall.

Remember the opening weeks of the App Store? Lots of Apps tried to sell for $10 or $5, but soon dropped to $3 and $2 and $1 before sales really took off. I think the same thing will happen here, and the one good thing about the Apple method is that the publishers are free to lower their prices to increase demand. The Amazon model was $10 for all and only they could reduce the price when it suited them.

I think we'll quickly see $9.99 prices for ebooks again.

 

[marksman]

It won't take long for random house to cave.

 

[gbytes1]

Fair Pricing

The fairest pricing model is one in which authors are compensated for their work. An agency model allows the publishers to establish a retail price
and require that resellers honor that price. This is not illegal or price fixing.

If some of the people complaining that they aren't getting books
"at a loss" made a living from their own intellectual property
they might realize that dumping (which is what amazon does) is
not in anyones best interest.

If you think a book is too costly, buy a cheaper one.

 

[tdmac]

Btw, what Apple is saying is that the publishers cannot sell somewhere else for
less. Basically, they do not want to have happen with book publishers that is happening with music labels where they are offering Amazon better pricing for the same content.

 

[babble]

I don't get why some of the big publishers are not on board? They get better pricing and profit control... Weird.

 

[ChrisA]

E-books should cost less than paperbacks I can pick up in store. >_> I would probably end up restricting myself to otherwise-expensive textbooks and the free Project Gutenberg classic literature, and by the similar-priced or cheaper paperbacks in store.

You are technically correct. No e-book should cost more than a paper back edition of the same title.

But you forget one thing the demographic who will pay $600 for a book reader with no books on it is the same math chalanged group who will buy the Chevy Volt at $45K to save on $3 gasoline then complains they don't have $45K for a house down payment.

Sure it does not make sense to most people, but they don't sell these to most people.

Me, I look at a $7 paper back vs. a $14 e-book that needs a $400 reader and I just go to the library. My local library is very good and I can get even brand new hard back books. I can reserve them on-line then they hold them for me at the front desk.

Eventually tablets prices will come down. In ten years these will be $80 gadgets that even children will all own. Then a different demographic will be the main customer and then "Content" wil be priced for that demographic. e-pub format books for just a $3 to $5 each.

 

[gwangung]

You are technically correct. No e-book should cost more than a paper back edition of the same title.

But you forget one thing the demographic who will pay $600 for a book reader with no books on it is the same math chalanged group who will buy the Chevy Volt at $45K to save on $3 gasoline then complains they don't have $45K for a house down payment.

Sure it does not make sense to most people, but they don't sell these to most people.

Me, I look at a $7 paper back vs. a $14 e-book that needs a $400 reader and I just go to the library. My local library is very good and I can get even brand new hard back books. I can reserve them on-line then they hold them for me at the front desk.

Eventually tablets prices will come down. In ten years these will be $80 gadgets that even children will all own. Then a different demographic will be the main customer and then "Content" wil be priced for that demographic. e-pub format books for just a $3 to $5 each.

The real problem is when publishers/retailers don't move the price down the demand curve over time.

$15 for an ebook at the same time as the hardcover? No problem if they'll move it down to $7.99 or lower when the mass market paperback is released. Big problem if they keep it at above mass market paperback prices after the paperback is released.

Baen is real good above moving prices down the curve. $14.99 at initial release; $6 at a couple months after that. I can live with that.

 

[Shasterball]

It's only illegal if you violate anti-trust laws. If you don't, you can engage in legal price fixing.

It legally happens all the time. Fast food places set minimum prices, and bookstores follow guidelines set by publishers, etc.

That is more along the lines of resale price maintenance, which is not per se illegal. Those are examples of a company keeping prices the same for its product in different markets. But trying to set prices among competitors, seems fishy to me. You need to have an anticompetitive effect, which is hard to prove now since the iPad isn't even on the market yet. But, it just doesn't seem quite right.

 

[NebulaClash]

That is more along the lines of resale price maintenance, which is not per se illegal. Those are examples of a company keeping prices the same for its product in different markets. But trying to set prices among competitors, seems fishy to me. You need to have an anticompetitive effect, which is hard to prove now since the iPad isn't even on the market yet. But, it just doesn't seem quite right.

I hear you, but that's the difference between something not seeming right to a non-legal mind, and something that violates a law. Only the latter gets you in trouble. And since no one in the industry, least of all Amazon who would have all the motive in the world, is making any noises about Apple's actions being illegal tells me there is nothing there.

 

[kernkraft]

I'm so glad that Apple pushed up prices for e-books, despite the fact that they are not even selling a credible e-book reader. I'm always glad to pay more for the same stuff.

I love books. I really do. Especially classic literature, more than modern novels. But...$15 for an e-book?

$15 for what amounts to a large text document seems out of line for the medium, considering delivery costs are inconsequential (compared to printing, binding, and shipping books to stores).

A random book I picked out on the Barnes and Noble web site:

Hardcover: $29.99 retail, $19.99 online
Paperback: $7.99 retail, $7.19 online
E-book: $14.99


E-books should cost less than paperbacks I can pick up in store. >_> I would probably end up restricting myself to otherwise-expensive textbooks and the free Project Gutenberg classic literature, and by the similar-priced or cheaper paperbacks in store.

There is a hardcover version, it's called the iPad Case and it's $39.99 from Apple.

 

[TennisandMusic]

They can get nailed when they have an illegal monopoly. Not until then.

They can insist because a publisher has the choice to do a deal with Apple or not. Those are contract terms. It's a choice, not being forced, and that's why this is legal.

If I draw up a contract with you, I can put anything I want in the contract. You then have a choice to sign or not. If you sign, it's a legal agreement we are both bound to. If you do not sign, there is no contract. And no matter how absurd my contract terms are, it's legal because nobody is forcing you to sign.

Well MS never had an illegal monopoly either, but I'm sure plenty of people here were gung ho about all of that. Sorry, but Apple is behaving in an anti-competitive nature.