Sunday, January 31, 2010

Amazon Caves To Macmillan’s eBook Pricing Demands; TechCrunch, 1/31/10

Leena Rao, TechCrunch; Amazon Caves To Macmillan’s eBook Pricing Demands:

"A new development in the Amazon vs. Macmillan fiasco. Amazon just posted an announcement indicating that will be “capitulating” to Macmillan by selling the publishers’ books for their desired prices.

Macmillan is trying to price their e-books at $15, while Amazon prices e-books at $9.99. Macmillan’s CEO John Sargent said that unless Amazon sets the price of new e-books to $15, the publisher will not distribute new books to Amazon when they are released. On Friday, Amazon basically banned titles, both paper and digital, published by Macmillan by refusing to directly sell them. And Macmillan took out an ad in the Publishers Marketplace magazine protesting the tactics being used by Amazon regarding pricing.

Amazon is now giving into Macmillan’s demands because of the publisher’s monopoly over its titles. In a passive aggressive manner, Amazon says that readers will decide whether its reasonable to pay $14.99 for e-books. And that other publishers will compete by offering their books and lower prices."

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