Which digital products are sold using agency pricing, which using wholesales pricing?

Discussion in 'Apple, Inc and Tech Industry' started by EbookReader, Apr 11, 2012.

  1. EbookReader, Apr 11, 2012
    Last edited: Apr 11, 2012

    EbookReader macrumors 65816

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    Apr 3, 2012
    #1
    Which digital products are sold using agency pricing, which using wholesales pricing?


    Digital Music (MP3): wholesale (Itunes, Amazon MP3 and Google Play can sell digital music below the wholesale pricing if they want....this will mean a loss for each item purchased. Amazon and GooglePlay recently priced Coldplay, Drake, Now 41 and Lady Antebellum albums at $0.25).

    Digital book: agency pricing for the Big 6 Publishers, wholesale for everyone else. It used to be wholesale. I'm sure everyone heard of the DOJ investigation.

    Digital Movie: ???? (I know for physical movies, it's wholesale since a lot of stores like Wal-mart, Target, Best Buy sold new release movies below their wholesale pricing (losing money to drive traffic to their stores)

    What other digital products out there?



    ----------for digital movie rental, it's wholesale,

    GooglePlay recently priced these movies at $0.25 (and Amazon price matched)

    Puncture
    Inglourious Basterds
    Vicky Cristina Barcelona
    American Psycho
    Crash
    Sunshine Cleaning
    Reservoir Dogs


    If it was agency pricing, discounting would not be allowed.
     
  2. EbookReader thread starter macrumors 65816

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  3. EbookReader thread starter macrumors 65816

    Joined:
    Apr 3, 2012
    #3
    From the DOJ lawsuit:
    http://assets.sbnation.com/assets/1053857/e-books_complaint.pdf

    Apple was in the process of developing a strategy to sell e-books on its new iPad device. Apple initially contemplated selling e-books through the existing wholesale model, which was similar to the manner in which Apple sold the vast majority ofthe digital media it offered in its iTunes store.
     

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