08 FEBRUARY 2010

Publishers join forces against Amazons e-book price constraints

HarperCollins and Hachette have joined Macmillan in the fight to prevent a ceiling on prices of digital books. Last week Macmillan were successful in getting Amazon to backtrack on the fixed pricing model of $9.99 for all digital downloads of books, and managed to set a tiered pricing model which will reflect an increased price based on the status, reputation, popularity and value of the individual book. It would appear that other publishers have the confidence to do the same,  and the news should  be well received by publishers and other retailers alike, who are struggling to compete in the book marketplace. The launch of the Apple iPad competing against the Kindle, Amazon's own electronic reader, has been the breakthrough that the publishers needed to mount their opposition to Amazons monopoly position, thus providing an opportunity to renegotiate their contracts. Sales of books are said to now have a ratio of 6:10 electronic versus hard copies, forcing the entire book industry to upgrade thier business models.