Remember how Amazon Kindle was supposed to give us all a more affordable way to buy and read books? After all, Amazon was supposed to set its own e-book prices so low to make it possible for Kindle owners to save money in the long run. We always knew that large publishers would not give up their profits easily. That’s exactly what has happened with Macmillan. The publisher has reached an agreement with Amazon to set its own e-book prices. It will also keep 70% of its sales for itself.
What does that mean for us consumers? It means e-book prices could be on the rise, essentially making the cost of owning a Kindle much higher than before. Of course, Macmillan is not the only publisher capable of standing up to Amazon. More large publishers will follow suit, and we could technically see higher e-book prices across the board. Authors Guild executive, Paul Aiken, put it best:
here are at least five other publishers who can get this deal from Amazon… The other publishers are going to follow suit. It would be irresponsible for them not to.
Apple had the same issues when negotiating music deals with iTunes. A price hike across the board will probably not affect Amazon that badly. But consumers are going to have to pay up more to get their hands on e-books that you can’t sell or share with others. Amazon can always make it up to its customers by lowering Kindle prices or introducing subscription plans to help lower the cost of owning these e-books.
This issue is not going to die down anytime soon. With Apple getting into e-book business as well, there is going to be a lot of back and forth action among Apple, Amazon, B&N, and other e-book reader makers. Publishers are going to have more bargaining power as more e-book readers make it big. Let’s hope these companies don’t get too greedy.
Your take: what’s your reaction to the possibility of publishers increasing e-book prices?
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4 comments
#1tomlintonFebruary 2, 2010, 3:18 pm
My set point
is at $9.99
I’ve bought more books
than I ever dreamed of doing
since I got the Kindle
because of perceived bargains
I can adjust
but I suspect
it will result
in lower purchases
So authors
If you want to sell to me
Take Amazon’s upcoming 70% deal
and cut out the middleman
Namely the publisher
#2Kevin ParsonsFebruary 2, 2010, 6:29 pm
My wife and I are both big Kindle users and share an Amazon account. Previously we got our books mainly from the library or from second hand bookshops, online at paperbackswap.com, etc. In other words, we did not buy that many new books. The only time I would buy a new book would be something work related such as a computer book or when we would see an author in person and would purchase the new book and get it signed.
I don’t think that we are alone in being Kindle owners who have become a new market for publishers and authors. If the publishers raise the price of ebooks too high (and 14.99 is too high for a book that I can read in an evening or two) then we will go back to using the library and the second hand market. We will stop the impulse purchases.
Here is a good example of how money is spent by a Kindle owner – and i think others can identify with it. About a year ago, the publisher made 2 of the mysteries written by Julia Spencer-Fleming available for free download to the Kindle. I got them because they were free. I did not think I would be interested in a mystery featuring a female minister in a small town. But I started the first book and discovered that the series was not a cosy mystery but a more realistic series with interesting characters and a well developed sense of place. So after reading the first 2 free books, I bought the third in the series for my Kindle. Since i do a lot of reading of different things, time went by until my wife mentioned wanting to read Julia Spencer-Fleming. I pointed out that we had 3 of her books and since we share an Amazon account between our 2 Kindles, I sent them to her and she read them also. Since she is a fast reader, she wanted to move on to the next 2 books in the series. She asked me “Should I buy them or get them from the library?” I said: “They are only 7.99 and we will both read them so just get them on the Kindle.” So she did. And when her new books comes out, if it is 9.99 or close to it, we will buy it as well. 14.99? At that point I would put it on hold at the library.
That example shows 2 things – it shows how free can be a good marketing tool. And it shows how a fair price and convenience can lead to more Kindle sales.
I have bought probably 8 or 10 books by new authors (or new to me) that I would not have purchased at a higher price point. If I get a book at 9.99 it is not a great loss if I don’t like the book, but when you go much higher then I would think more and impulse buy less. I think a lot of people feel the same way. And i don’t feel stuck to the 9.99 price point – but I think if the prices were all to jump for the bestsellers to 14.99, it would mean purchases would be for either special occasions or for those long books that really benefit from the Kindle font sizes and Kindle weight.
Ebooks for the Kindle are not the same as real books. You can’t lend them to a friend, pull them off the shelf to show someone or easily use as reference. And unlike a real book, you are limited in your rights. If I mark up a book I own, it is my right. There is no term of service with a real book. When you can go into Target and get a new book for the same price as the ebook, it feels like a rip off.
#3David H. DeitrickFebruary 2, 2010, 7:25 pm
If the publishers wish for me to pay them more for their e-books, then they must provide additional value. That value should be the ability to read the book on any device I own, now or in the future. This means, I think, a more standard e-book format.
Up to now, I have been willing to risk $10 on a book I am not sure I would like, at $15, I will not be so willing to take that risk. As a result, I expect that my TOTAL expenditure on e-books for 2010 will be less than what I spent in 2009 because the price has exceeded my “impulse” threshold.
When are the purveyors of media going to get that making it harder on their customers is NOT in their best interest as those customers will become frustrated and take their money elsewhere.
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