Amazon E-book Prices Set Publishers On Edge
September 3, 2010 • Uncategorized • Comments
Although the Kindle has created lots of fan fare from its release , it seems that some are not pulling for the new reader. With its deployment has come a pricing war from some top retail merchants. E-books have gone as low as £3 (almost $5) because of the “battle” and publishers are not happy .
The opening of the UK market had long created fears of a price war similar to the one that rolled through the US, and those fears look to have solid foundation. Some publishers feel that the low prices would not affect the price of e-books in the future, but others have stated that the price war was “absolutely absurd.”
This current battle comes in the wake of a new trend in publishing, marketing discount books online.
Amazon debuted its e-book store with the stated blueprint of offering the lowest prices in the world. But, its competitor had something to say about it. W H Smith dropped prices of its top 100 fiction e-books about 70% off, and also sold all other e-books at a 50% discount .
Over the years Amazon continually has priced some of its bestsellers at under £3, making waves throughout the publication world. Some publishers and rival retailers have accused Amazon of selling the titles at a loss, possibly to drive out competitors .
“It’s absolutely absurd to devalue our product but I’m not surprised because our industry is populated by nincompoops.”
Not exactly kind words for the online retailer marketing discount books.
“In this instance, on the wholesale model, publishers are fine because it is retailers taking the pain. If we say a book is £10 and you get 40% discount, we get £6. If the retailer chooses to sell it for £2, we’re still all right.”
It seems that this “major publisher” must be confused, because he has now said that their model is both OK and dreaded. It’s a wonder he works selling words.
The Bookseller recently reviewed e-book prices and found that Amazon and WHS have the lowest prices on the market, a boon to customers . Prices at both of these retailers are considerably lower than on Apple’s iBookstore, where prices are set by the publisher.
The war is on, and the winner unclear; but it seems that no matter which way the battle turns consumers will have the final word. Should e-books be purchased on price alone? It’s up to you to decide.
