business, commentary, publishing

The good and bad news from the pricing war between Amazon and publishers

For readers, there is one easy win to come from the current fight between Amazon and publishers over how to price and sell ebooks, and it is that at least one of the publishers demanding a change in terms has said that it will stop delaying ebook releases if it can practice variable pricing.

Young said the company would release e-books simultaneously under the new model–Hachette USA had been one of a number of US publishers to window new releases because of the price they were being offered for sale on Amazon.com’s Kindle device.

The second bit of good news, although this is more for authors, is that the new model gives authors and their agents room to demand higher royalty rates for digital sales. Publishers Weekly reports that Macmillan has already announced it will bump up digital royalty rates from 20% to 25% moving forward.

The bad news, which you already know, is that the next new ebook release from Macmillan or Hachette might be $15, as there’s no guarantee that Amazon will be the cheapest ebook store in town anymore. Unfortunately, thanks to digital rights management (DRM) across the marketplace, for now at least you won’t be able to comparison shop from your Kindle.

“Hachette moves to ‘agency model’ in the US” [The Bookseller]
“Sargent Says Deal is Closer; Macmillan Royalty Rate to Rise” [Publishers Weekly]

(Photo: Jandro S)

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