Jan 28 2010
Publishers are looking on Apple's iPad as a chance to reset the downward spiral in e-book prices. Yesterday, when Steve Jobs announced the new iPad he also confirmed that five of the six largest publishers have signed on to provide e-book content for the new tablet. Hachette Book Group, HarperCollins Publishers, Macmillan, Penguin and Simon & Schuster are all on board, while a spokesman for Random House, the world's largest publisher of books for consumers, said the company would "look forward to our continuing conversations" with Apple.
Apple and publishers have agreed a business model that gives them more power over the price that customers pay for e-books - control that had been effectively lost with Amazon's Kindle. With Apple, the maximum price of an e-book will be tethered to the print price of the book so that most general fiction and nonfiction titles will be $12.99 to $14.99 with Apple taking 30% and the publishers taking 70%.
In the short term it is likely that authors and publishers will earn less from book sales on the iPad because Amazon subsidizes the low $9.99 price point on the Kindle by paying publishers a higher wholesale price equivalent to what booksellers typically pay for print editions. The worry for all publishers, though, has been that once the $9.99 price point had been firmly established in consumer's minds and Amazon had achieved dominance in the market place, that they would stop subsidizing the $9.99 price point and demand lower digital wholesale prices, which would make it difficult for publishers to make a profit on anything other than the bestselling books.
Become a Member
and discover your next great read!
Win the book & DVD
Enter to win The World of Poldark and the full first series on DVD.
Solve this clue:
and be entered to win..
Visitors can view some of BookBrowse for free. Full access is for members only.
Your guide toexceptional books
BookBrowse seeks out and recommends books that we believe to be best in class. Books that will whisk you to faraway places and times, that will expand your mind and challenge you -- the kinds of books you just can't wait to tell your friends about.