Before Apple became involved, Amazon was "dumping" ebooks at prices below cost to gain market share.
Without someone willing to take less profit, capitalism doesn't work. It is illegal to price fix, period.
Before Apple became involved, Amazon was "dumping" ebooks at prices below cost to gain market share.
Fantastic news.
Let's hope it gets wrapped up soon and the monopoly on e-books meets a swift death.
It's amazing the hypocrisy Apple fanboys have.
If this were Amazon being investigated by the Dept of Justice, all the fanboys would be saying
GOOD, ebook prices too high, Amazon taking advantage of customers.
But because it's APPLE, the fanboys say
Terrible, Apple is the best with ebooks, this is WRONG!
Finally. I know I will be marked down on this site for saying this but...before Apple entered the ebook business, prices were coming DOWN. After Apple entered the ebook business, prices all went up and have stayed flat at the new price point.
Not if it hurts the publishers. It's already a declining business. If publishers lose sales, they'll be less likely to publish newer authors. Everything you see will be written by Stephen King or Stephenie Meyer![]()
Thank you big brother.
I'm glad they don't waste time with time wasting issues such as collusion of gas prices at the pumps, and they deal with important things like book prices.
The WSJ had a good article -- and good comment chain -- on this issue about a month ago in Steve Jobs, Price Fixer? The money quote from that article:
Indeed. I've stayed away from purchasing any e-book so far. Why would I pay $15 for a digital copy when I can order the same book online for $7?
I guess you're paying for the convenience of having all the digital copies in the palm of your hand, but digital distribution was supposed to make things cheaper!!!
If I can buy a hundreds of games on Steam for a fraction of the cost of what the boxed copies would have cost me, I'd think books (and movies) would be even cheaper.
Same with online movies.
Why buy a movie on iTunes for $15-$20, when I can pick it up on Blu-Ray at Walmart for $10 (which includes the HD Blu-ray, DVD, and sometimes even a free digital copy)?
Thank you big brother.
I'm glad they don't waste time with time wasting issues such as collusion of gas prices at the pumps, and they deal with important things like book prices.
Because stores can sell physical books at whatever price they want. Barnes & Noble can have a sale where a certain book is 25% off, etc. With eBooks the publishers are setting the price, essentially cutting out the middle man. This is great for the publisher but terrible for the consumer. This is the reason why most Kindle books are more expensive than their physical counterparts.
It's amazing the hypocrisy Apple fanboys have.
If this were Amazon being investigated by the Dept of Justice, all the fanboys would be saying
GOOD, ebook prices too high, Amazon taking advantage of customers.
But because it's APPLE, the fanboys say
Terrible, Apple is the best with ebooks, this is WRONG!
It seems that Amazon now has a good team of bribers.
Oh please, independents will do better without publishers. Publishers screw authors. Authors have put up with it until now because authors can't afford their own printing presses. Now that authors are free to sell their material directly to readers via Amazon or Apple, they're making vastly more money.
Source? My mother has been an author for over twenty years. Up until two or three years ago, she was bringing in ~$10K/year. It was nice, but obviously not enough to support the family alone. My dad was bringing in ~100K/year; he was the one supporting the family. Then my mom started selling on Amazon. Now she makes ~$100K/year, as well. And then my dad got laid off. Were it not for Amazon's support for independent authors, our family would have been screwed. As it is, we can make it through with a little less while dad searches for a new job.
Just because prices go down it does not always mean it is a good thing. I know a lot of people in the publishing industry and many of them have been laid off over the past few years as Amazon has exacted lower and lower prices from them which they have to accept since amazon accounts for so much of their sales. There is also a constant worry that they will loose their jobs. So Apple comes along in this emerging sales channel and says hey we want to sell these for more, but that will only work if you make it impossible for anyone to beat our price, but we have the clout to make a ton of sales how does that sound to you. Collusion by definition sure, but at the end of the day better than struggling to stay in business.
great news for the consumer!
I can't believe how much ******** is in this post. Learn to use lose/loose proper PLEASE.
Collussion is better than struggling to stay in business? Collusion just like conspiracy is ILLEGAL. Price fixing is ILLEGAL.
To jusitfy collussion and price fixing is ridiculous.
Ugh, some of you have such a fundamentally poor grasp of consumer economics law it's a little scary. No, it's a lot scary.
but what Apple tried to enforce with what they call an "agency model" (which it actually isn't) is pure collusion and patently illegal.
Also: Amazon's lobbying efforts are minuscule compared to Apple's, just fyi.
I'm not sure what collussion is, but whether or not Apple and the publishers engaged in collusion remains to be seen.
It seems to me that Apple's deal with the book publishers wasn't greatly different from its deal with music publishers. They can set whatever price they want, so long as they always offer Apple the lowest price, and Apple gets their 30% commission.
There's nothing inherently anti-competitive about the agency model. It's one form of pricing model. There's nothing inherently "better" about the wholesale model, either. The agency model was a way for Apple, who was a new entry into both the music and book industries, to gain acceptance and strike deals with the content providers. At the end of the day, it's the content that's the most important. Apple couldn't compete on price, and they don't compete on price in any of their other markets, either. Instead, they offered a service that played to their strengths. That's called being competitive.