Amazon Concedes to Macmillan on Price of eBooks

On Friday, Amazon.com shocked the publishing world when it pulled both the digital and physical books of Macmillan, the large international publisher, after Macmillan said it planned to begin setting higher prices for its e-books. Until now, Amazon has been setting e-book prices itself, and has established $9.99 as the common price for new releases and best-sellers.

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. The New York Times reports.

“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.”

Sounds like Amazon wished Macmillan didn't have a monopoly over their own titles. Perhaps Amazon wants to write, edit, publish, print, design, bind, price, market, distribute, sell and ship its own books in addition to formulating its own proprietary reading technology and software?

Comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

Be careful what you wish for

>Perhaps Amazon wants to write, edit, publish, print, design, bind, price, >market, distribute, sell and ship its own books in addition to formulating >its own proprietary reading technology and software?

Be careful what you wish for. Amazon made $200 million in profit last year. If they want to get into the publishing game they have the money to do it and they have their site to promote and sell the books.

Here is commentary at Forbes.com arguing that Amazon should vertically integrate and take out the publisher. The author of the piece makes an argument that this would be better for the author.
http://www.forbes.com/2008/05/16/mitra-amazon-books-tech-enter-cx_sm_0516mitra.html

Syndicate content