Tag Archives: pricing

ipad-ebook-VIA WIRED-COM

eBook Pricing under Scrutiny by FTC

ipad-ebook-VIA WIRED-COM

via Wired.com

Amazon, with their aggressive ebook pricing model during the launch of the Kindle, scared publishers that they could wield incredible control over the book retailing space – squeezing out competition like Borders, Barnes & Nobles and others.

The FTC is warning Apple and other Publishers of their need to respond to an industry-wide pricing ‘agency model,’ in which the publishers control the price of the books, providing a 30% cut to the reseller of the title. Apple was the one who pushed for this pricing structure and is even recounted within Steve Job’s biography according to a Wall Street Journal report.

“The five publishers facing a potential suit are CBS Corp.’s Simon & Schuster Inc.; Lagardere SCA’s Hachette Book Group; Pearson PLC’s Penguin Group (USA); Macmillan, a unit of Verlagsgruppe Georg von Holtzbrinck GmbH; and HarperCollins Publishers Inc., a unit of News Corp., which also owns The Wall Street Journal.

Spokespeople for the five publishers and the Justice Department declined to comment. Apple, which introduced a new version of its iPad tablet Wednesday, declined to comment.”

Source: Wall Street Journal
Photo Credit: Wired