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With Apple’s new iPad acting as a big rock thrown into the e-book pond, Kindle maker Amazon.com has given in to the pricing demands of publisher Macmillan. The move could mean fewer under-$10 prices for new e-books. Amazon, whose Kindle is currently the front-running e-book reader and which offers a large inventory of e-books, had been resisting Macmillan’s requirement of a pricing hike. New e-books on Amazon have been priced at $9.99, but Apple is reportedly offering higher prices to publishers for iPad content. ‘We Will Have To Capitulate’ Prices for Macmillan’s e-book versions of best sellers and most hard covers will be $12.99 to $14.99. “We have expressed our strong disappointment and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles,” Amazon had said in a post on its Kindle forum last week. Macmillan titles remained listed, but could only be bought through third-party marketplace sellers. But, the bookseller noted, “we will have to capitulate and accept Macmillan’s terms” because the publisher controls its titles. Amazon said its customers will need to “decide for themselves” whether to pay prices that it described as “needlessly high for e-books.” The bookseller said it doesn’t expect that “all major publishers will take the same route as Macmillan,” and “many independent presses and self-published authors” will price themselves lower to provide a competitive alternative. The pricing showdown is only the latest battle is the rapidly changing environment for electronic books. Major publishers are concerned that low prices for e-book versions of titles currently in hard cover could drive down the perceived value of physical books, in the way that digital downloads of songs affected the CD industry. iPad Changed Amazon’s Leverage Publishing executives and some agents and authors are praising Macmillan’s stand and criticizing Amazon’s attempt to establish monopoly control. Amazon is also getting criticism from…
Read the rest here: Amazon Gives in to Macmillan’s Demand for Higher Prices
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mona mccallum