Thursday, September 9, 2010

Apple’s proxy war with Amazon over ebook pricing and market

Amazon seems to sell all of the name "McMillan" (remove the print and electronic) in a dispute with a dell laptop adapter publisher on the conditions of sale. Macmillan CEO John Sargent wrote:

Last Thursday, I met adapter hp laptop with Amazon in Seattle. I gave them our proposal for the new conditions of sale of electronic books in a modeling agency, will enter into force in early March. I also told them that they can stay with their old conditions of sale, but that it is wide and deep window titles. Eventually, I returned to New York yesterday afternoon in the end, they told me that he took all our books on Amazon Kindle and beyond. Books are still available on Amazon.com by third parties.

'Delay Window "means the presence of the window during which a higher price can be calculated.

This is a remarkable spat with many consequences. Pressing challenge: Macmillan book will increase prices and inspiron 1525 adapter or greater decrease in sales price from Amazon.com.

McMillan is trying to dictate prices and conditions:

In the model agency, we will sell digital editions of our books to consumers through our dealers. Our distributors are acting on our behalf and the commission of 30% (standard distribution for many businesses now use digital media). Price price of each product separately controlled. We plan to make the digital output of most books for adults trade in a price range of $ 5.99 to $ 14.99 price. In the first release, along with the release, most of the titles between $ 14.99 and $ 12.99 will be charged separately. E books nearly always appears every day of physical volume of production. Prices over time, dynamically.

Amazon is unlikely to accept a paltry 30%. This is the term used for wholesale. In addition, according to the author should read Charlie Stross title as Amazon Kindle, a sublicense fewer resources, in fact, only a license fee to the publisher of turning traditional publishers publish rudimentary marketing add / ". Amazon wants to keep prices low by Title Kindle, which rely on the market and the dominance of light.

The stakes are high for Amazon to take such drastic measures,HP DV6000 Adapter and McMillan, his relationship with risk, the largest bookseller in the world. And they are. Electronic books are the market more and more important, who knows, they may become the basis of the market - even if paper and ink elastic.

Why this time decided to take on Amazon McMillan? Apple. The key is in this conversation between Walt Mossberg and Steve Jobs during the presentation of IPAD, told Kara Swisher:

In the video, Job Mossberg asked about the use of iBooks and the prices of electronic books and employment for the same price as Apple Amazon (AMZN).

"Prices are the same," Jobs said earlier in a small laugh at the author of the e-reader Kindle. "Publishers really search their books Amazon, because they are not happy."

Translation: Apple has big plans for the book. Part of this strategy is to support the publisher through better conditions than those currently received at Amazon, both in terms of flexibility in pricing and size of their share of winning. With confidence in the breathtaking view that publishers can create the best work to dictate its terms in the Amazon basin, based on what Apple is doing, even if not yet IPAD, and the result will be price parity.

McMillan obedient and share the theory test.

Until now, Macmillan and Apple, to win the war of public relations. His face, which is not surprising since Amazon, to keep prices low. Nevertheless, refuses to sell a currency at the anger and intimidation, as well as the transition angered writers like Strauss, who by nature of their trade to formulate high. Reading public in favor of publishers and authors, perhaps because the assumption that most of the books at a loss, which leads to lower prices do not benefit in the long term.

Curiously, it is almost the opposite of what happened in music, Apple is trying to impose the adoption of labels at a fixed price. There is less public sympathy for the music industry, thanks to DRM downloads and abuse, and provide a challenge for artists is not a fair share.

Personally, I am careful with the assumption that each party has the moral superiority here. I'm sure that Apple all sound editors want to hear now, but because new entrants to the market. If publishers are smart, they will be different book sellers to promote, because it is in their interest long-term.

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