E-Book Prices Ratchet Up - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
Government // Mobile & Wireless

E-Book Prices Ratchet Up

The Amazon model of selling e-books for $9.99 is being challenged by publishers, who are setting tiered pricing for digital books.

"We don’t like the Amazon model of selling everything at $9.99. ... We think it really devalues books and it hurts all the retailers of the hard cover books," Murdoch said during News Corp. earnings call with financial analysts. Excerpts from the call were printed on The Wall Street Journal's All Things Digital blog.

Murdoch did not say how much HarperCollins would be charging for e-books.

"There will be prices very much less than the printed copies of books but still will not be fixed in a way that Amazon has been doing it," he said. "It appears that Amazon is now ready to sit down with us again and renegotiate pricing."

Publishers got their opening to change e-book pricing with Apple's introduction of the iPad tablet computer. Publishers plan to use tiered-pricing in offering e-books on Apple's online bookstore. Publishers lining up to support the iPad include HarperCollins, Hachette, Penguin, Macmillan and Simon & Shuster. More publishers are expected to join.

In taking control of pricing early in the emerging e-book market, publishers apparently have learned from the mistakes of record companies that let Apple set a 99-cent cap for songs sold on its iTunes store. The model led to Apple becoming the largest music seller in the United States by selling tunes for its market-leading iPod music player.

Apple's clout made it difficult for record companies to introduce tiered-pricing on iTunes. Apple gave in last year, only after intense pressure.

Following Apple's strategy, Amazon has used the $9.99 pricing model to become a leading e-book seller through the success of its Kindle reader. The thin, lightweight gadget accounts for about 60% of the e-reader market, according to some analyst estimates.

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Previous
2 of 2
Next
Comment  | 
Print  | 
More Insights
Commentary
2021 Outlook: Tackling Cloud Transformation Choices
Joao-Pierre S. Ruth, Senior Writer,  1/4/2021
News
Enterprise IT Leaders Face Two Paths to AI
Jessica Davis, Senior Editor, Enterprise Apps,  12/23/2020
Slideshows
10 IT Trends to Watch for in 2021
Cynthia Harvey, Freelance Journalist, InformationWeek,  12/22/2020
White Papers
Register for InformationWeek Newsletters
Video
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you.
Slideshows
Flash Poll