iPad may reset downward spiral on e-book prices

BookBrowse News - The Full Story

iPad may reset downward spiral on e-book prices

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.

More News Stories

Support BookBrowse

Become a Member and discover books that entertain, engage & enlighten!

Join Today!

Editor's Choice

  • Book Jacket: How to Stop Time
    How to Stop Time
    by Matt Haig
    Tom Hazard, the protagonist of How to Stop Time, is afflicted with a condition of semi-immortality ...
  • Book Jacket: Mothers of Sparta
    Mothers of Sparta
    by Dawn Davies
    What it's about:
    The tagline on the back cover of Mothers of Sparta says it all: "Some women...
  • Book Jacket: Fortress America
    Fortress America
    by Elaine Tyler May
    In Fortress America, Elaine Tyler May presents a fascinating but alarming portrait of America's...
  • Book Jacket: The Friend
    The Friend
    by Sigrid Nunez
    Sigrid Nunez is one of the most underrated authors writing today. Her work is so lovely, so ...

Book Discussion
Book Jacket
The Women in the Castle by Jessica Shattuck

A nuanced portrait of war, and of three women haunted by the past and the secrets they hold.

About the book
Join the discussion!

First Impressions

  • Book Jacket

    Force of Nature
    by Jane Harper

    A riveting, tension-driven thriller from the New York Times bestselling author of The Dry.
    Reader Reviews

  • Book Jacket

    Next Year in Havana
    by Chanel Cleeton

    a Cuban-American woman travels to Havana, where she finds a family secret hidden since the revolution.
    Reader Reviews

Win this book!
Win The Lost Girls of Camp Forevermore

The Lost Girls of Camp Forevermore

A gripping novel from the award-winning author of For Today I Am a Boy.

Enter

Word Play

Solve this clue:

G O T P, B The P, F T P

and be entered to win..

Books that     
entertain,
     engage

 & enlighten

Visitors can view some of BookBrowse for free. Full access is for members only.

Join Today!

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.