TBI Research is reporting that at least one major publisher sees no reason to shift to the agency model and increase e-book prices.
The "agency" model lets the publisher sets the price and gives the retailer a 30% or so commission.
"One major book publisher we spoke with sees no reason to shift to that model right now or anytime in the near future.
The reason is that book publishers make less money from the agency model than they do from the traditional wholesale model (in which Amazon buys a book license at the full wholesale price, and then sells each copy for whatever it wants, often losing money on the sale). The agency model, therefore, also leaves publishers less money to pay authors and agents."
If several publishers decide to stick with the wholesale model, Amazon might have the opportunity to undercut Apple in pricing for at least some titles.
Read More [via MacRumors]
The "agency" model lets the publisher sets the price and gives the retailer a 30% or so commission.
"One major book publisher we spoke with sees no reason to shift to that model right now or anytime in the near future.
The reason is that book publishers make less money from the agency model than they do from the traditional wholesale model (in which Amazon buys a book license at the full wholesale price, and then sells each copy for whatever it wants, often losing money on the sale). The agency model, therefore, also leaves publishers less money to pay authors and agents."
If several publishers decide to stick with the wholesale model, Amazon might have the opportunity to undercut Apple in pricing for at least some titles.
Read More [via MacRumors]