Random House Adopts Agency Model for e-Books, Coming Soon to iBookstore?

[G58]

No one has talked about what then you do with the book when you're done in iBooks. There's still no mechanism in iBooks that addresses this. I find it still very frustrating that the consumer is expected to buy an ebook that will never change in price and then not allowed to "loan" the book, or even give the book away to someone. I would like to give the rights to the book to someone else when I'm finished. I see no sense to be stuck with the book. I would even like to be given the option to give the rights to say a library. Some libraries are now allowed to "loan" an ebook out for a specific time just like a typical brick and mortar library.

We are being penalized as ebook readers just for the shear fact we love convenience.

Is this even fair?

Let me see now, I'm trying to find where ANYONE in the ENTIRE CONVOLUTED HISTORY of the FLIPPIN' WORLD, has decreed life would be fair. I've searched diligently though every reference I can find, and guess what...

 

[WiseAJ]

Random House content has reached the iBookstore, I just checked

 

[Bulldogger]

Let me see now, I'm trying to find where ANYONE in the ENTIRE CONVOLUTED HISTORY of the FLIPPIN' WORLD, has decreed life would be fair. I've searched diligently though every reference I can find, and guess what...

Well you don't have to be a douche about it. I'm merely bringing up a point that hasn't been addressed in the thread and you have to be a smart ass. Very productive, btw.

 

[marksman]

Because they made a LOT more money under the wholesale model. It worked like this:

Hardcover has a MSRP of let's say $28. Wholesale price of both the pBook and eBook are 50% of this, so $14. Amazon chooses to sell the book for $10. Random House makes $14 gross revenue, Amazon loses $4.

Agency model: Random House sets the price of the eBook at $14. Amazon/Apple takes 30%. Random House's gross revenue is $9.80, Amazon makes $4.20.

While I don't agree with the publishers strategy, that is true, but the reason they did not want that is because it is a very short term strategy that quickly devalues the product they offer.

The publishers are fighting hard to maintain a perceived value for their product, and that is the actual words and editing of books, not the medium in which it is transfered. So they are saying, the core and soul of this product is exactly the same, the reason why you buy it is the same...The price would be the same.

They didn't want Amazon selling their books below cost, because it devalues their product in the long term.

 

[OllyW]

Also FWIW Random House UK say they won't be making this change, as they wait for the outcome of the OFT investigation into ebook selling practices.

The EU seem to be investigating it too.