And so it begins! Amazon bans Macmillan over iPad

[SteveSparks]

Last night on the radio news, it was reported that Amazon would be pulling any content that is offered through the Apple book store.

It was also mentioned on Coast to Coast AM.

So best buy will no longer sell Sony because you can get it at Frys?

This is problem and would likely at some time be addressed by the FTC, since there should be a set wholesale price and if the person selling the book wants to sell at a loss they can sell at a loss.

 

[Peace]

Amazon caves.

http://www.nytimes.com/2010/02/01/technology/companies/01amazonweb.html

Amazon Concedes on Electronic Book Pricing

"But in a message to its customers posted to its Web site on Sunday afternoon, Amazon said that while it strongly disagreed with Macmillan’s stance, it would concede to the publisher."

 

[samcraig]

the kindle and the iPad are not direct competitors. Will the iPad eat into Kindle's market - of course. But there are plenty of people who JUST want an e-reader and prefer e-ink. And the iPad is priced at 499 vs the introductory kindle of 249. Yes - you can go on at how much MORE an iPad can do. But at the end of the day - some people don't want that. Don't care. Would rather spend the other $250 on books instead of a device that does more.

Just like people spend money on other phones besides the iPhone. And computers besides the Mac. And on Mp3 players from all different manufactures.

Will the iPad be the "premier" device. Perhaps. But there's plenty of marketplace for both.

 

[sishaw]

Amazon caves.

http://www.nytimes.com/2010/02/01/technology/companies/01amazonweb.html

Amazon Concedes on Electronic Book Pricing

"But in a message to its customers posted to its Web site on Sunday afternoon, Amazon said that while it strongly disagreed with Macmillan’s stance, it would concede to the publisher."

That was quick!

 

[Peace]

And btw. Amazon DID pull McMillans books officially.

“We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles,” Amazon said. “We want you to know that ultimately, however, we will have to capitulate and accept Macmillan’s terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books.”

 

[NoSmokingBandit]

Lol, so i guess when Steve said the eBook prices would be the same on the iPad as the Kindle he meant Apple was going to strongarm the customer into paying more, not less!

 

[master-ceo]

Lol, so i guess when Steve said the eBook prices would be the same on the iPad as the Kindle he meant Apple was going to strongarm the customer into paying more, not less!

lool. let me see, they try to take over music, video now ebooks. Steve Illuminati,
The Steve World Order

 

[*LTD*]

Ripping the Wrong Page From Apple's E-Playbook

http://www.ecommercetimes.com/rsstory/69287.html

Ripping the Wrong Page From Apple's E-Playbook

Apple's "iPad has already started to change the landscape of digital publishing: After a few days of a public battle, Amazon was forced to capitulate to a new deal with Macmillan, one of the six largest publishers; on Friday, Hachette started to make noise too," Andrea Belz reports for E-Commerce Times.

"An excellent summary on The New York Times describes how previously, Amazon set the prices -- typically a default of US$9.99 for new releases and best sellers," Belz reports. "Because the cost to Amazon is typically $12.50-$17.50, this scheme lost money for the e-tailer but promoted the sales of the Kindle reader."

"In the new world order, the publisher will set the consumer price and the online retailer will simply be the agent, taking a 30 percent commission; online book sellers will move to acting as an intellectual's eBay Books sold electronically will generally cost $12.99-$14.99," Belz reports. "

"Unfortunately for Amazon, management discovered that you cannot simply take a page (so to speak) from the Apple playbook and apply it to any industry," Belz reports. "Amazon basically copied the Apple iTunes model -- a fixed, low item price for the content that promotes the sales of the hardware -- and then discovered that Apple changed the rules. How did this happen?"

Unlike the musicians, "writers and their agents/publishers do not have an opportunity equivalent to the high-margin live performances; the entire margin has to be generated with the content sales," Belz reports. "Since Apple's deal lets publishers attempt to preserve content, it may be as simple as my grandmother's saying: 'To make money, you have to let other people make money.'"

Belz writes, "This is where the strategy gets interesting. Apple starts to exploit the 'iEcosystem' that it has already created to promote hardware and software. Then it takes out Amazon and other competitors to dominate e-book distribution. At that point, Apple can return to the publishers with a new deal."

 

[zemzabob]

Sounds like Amazon is working for lower ebook prices, which I support. I seem to remember Apple fighting for this awhile back in the mp3 market, while Amazon was charging more for select songs.

I agree I commend Amazon on trying to save me money on books keep up the fight!

 

[eawmp1]

Let the market decide pricing. Now that there will be alternatives to the Amazon monopoly, the playing field must level. If you want a Macmillen product, and Amazon doesn't offer it, you will buy it elsewhere. If it is offered in many places...price, convenience, customer loyalty will dictate sales.

Sorry, Amazon...you cannot be a monopoly.

 

[zemzabob]

Let the market decide pricing. Now that there will be alternatives to the Amazon monopoly, the playing field must level. If you want a Macmillen product, and Amazon doesn't offer it, you will buy it elsewhere. If it is offered in many places...price, convenience, customer loyalty will dictate sales.

Sorry, Amazon...you cannot be a monopoly.

Yeah Amazon what the hell are you thinking buy trying to save me money? Sorry Amazon but you can't save me money!

 

[zemzabob]

It's funny to me how Apple can make things more expensive for us and some people are like yeah Apple stick it to um.

And I love Apple products, but I'm not a fool.

 

[mkrishnan]

It's funny to me how Apple can make things more expensive for us and some people are like yeah Apple stick it to um.

I agree... this is worrisome to me -- I don't see any sense in which variable song pricing in the iTunes store has been a success in any form to customers. The pricing model in the App Store has been great, but if anything, the bulk volume of sales in fiction and non-fiction books is much more like the music store than the App store.

In the end, even if I ditch the Kindle store and start buying books from Apple, I am still paying more than I was, and more to the point, I am not receiving any kind of discount related to the reduced tooling, production, and transportation costs associated with the h/c book I did not buy, particularly considering that the cost associated with transforming the already digital master of the book into a Kindle book is likely to be pretty small.

 

[eawmp1]

My point is, you MAY have to pay more for certain content. A song is approx. 2 1/2 minutes and while there are different genres, its all music...for listening pleasure.

The literary publishing industry is much more diverse. Different length of product, different targets, uses far beyond diversion (technical, educationa, political, etc). One price fits all will not work. Also, there is not outside revenue generated from their work - authors can't go on ticket revenue-sponsored tours and most don't sell a lot of t-shirts, mugs, concert programs, etc.

As we transition from printed to electronic media, the rules will change and there will be growing pains. I'd rather have several outlets to receive material than just one. The market works when there are choices (both in content and pricing).

 

[mkrishnan]

The literary publishing industry is much more diverse. Different length of product, different targets, uses far beyond diversion (technical, educationa, political, etc). One price fits all will not work. Also, there is not outside revenue generated from their work - authors can't go on ticket revenue-sponsored tours and most don't sell a lot of t-shirts, mugs, concert programs, etc.

It is, and it isn't. I agree that $9.99 for all is very constraining, and at times unreasonably expensive, when the same book is being cleared out at the store in hardcover for $3-4.

However, if you take a subcategory of books, like literary fiction paperbacks, trade paperbacks, new release bestseller fiction hardcover, new release bestseller fiction soft cover, the spread in pricing at the major retailers is actually pretty small within the category.

If the key issue here is that the booksellers can't make a business case selling at the lower price, then fine, but I'd like to see more evidence from them than just saying it's so, and I'd like to see the Kindle and other digital editions sold at a lower price than the hardcovers to adjust for the economic impact of reduced production cost as well as the inability to resell the book. I don't see any justification for just charging the same as a hardcover for a book, especially once the paperback has been released.

 

[samcraig]

has anyone bothered to post that not ALL bestsellers or whatnot at Amazon ARE 9.99?!

I have seen several new released priced higher than 9.99.

 

[NoSmokingBandit]

My point is, you MAY have to pay more for certain content. A song is approx. 2 1/2 minutes and while there are different genres, its all music...for listening pleasure.

The literary publishing industry is much more diverse. Different length of product, different targets, uses far beyond diversion (technical, educationa, political, etc). One price fits all will not work. Also, there is not outside revenue generated from their work - authors can't go on ticket revenue-sponsored tours and most don't sell a lot of t-shirts, mugs, concert programs, etc.

The thing is that not all songs are ~3 minutes long, or even close. Im a huge Mars Volta fan and their songs tend to go on well past the 10 minute mark.

So should the music industry charge per minute? Or should each whole cd cost $10 regardless of length? Should a 200 page book cost the same as a 500 page book? Should a book cost more because more effort was put into writing it (kids books vs books on graphical design, for instance)? But then shouldnt music from Steve Vai cost much more than something from Blink-182?

Just a few things to think about. Im not even sure where i'm going with it, i just started to ramble...

 

[samcraig]

The thing is that not all songs are ~3 minutes long, or even close. Im a huge Mars Volta fan and their songs tend to go on well past the 10 minute mark.

So should the music industry charge per minute? Or should each whole cd cost $10 regardless of length? Should a 200 page book cost the same as a 500 page book? Should a book cost more because more effort was put into writing it (kids books vs books on graphical design, for instance)? But then shouldnt music from Steve Vai cost much more than something from Blink-182?

Just a few things to think about. Im not even sure where i'm going with it, i just started to ramble...

Like the quote about artists "Do you charge by the inch or by the hour?"