Apple wants to price hardcover bestsellers $13-$15 on tablet - WSJ
Book publishers are said to be in 11th hour negotiations with Apple to provide books for its forthcoming tablet, with new hardcover bestsellers priced at $12.99 and $14.99.
A new report Tuesday evening from The Wall Street Journal claimed that Apple and book publishers are looking to hammer out a deal that would offer standard pricing with Apple taking a 30 percent cut of sales. The variable pricing structure would also allow some books to be priced at $9.99.
Specifically named in "serious negotiations" with Apple late Tuesday was HarperCollins, which was stated by the Journal weeks ago to have had talks with the hardware maker.
The report notes that Apple's approach is different from Amazon, which has focused on giving "bargain-basement prices" for books. Apple would rather charge a higher premium for its content, sources told the Journal. It said the tablet will create a major battle between Apple and Amazon over how books are priced and distributed.
It also said that while Apple would recommend prices of $12.99 and $14.99 for new bestsellers, publishers would be able to establish their own prices and "re-set the rules" with the tablet.
Book publishers have apparently been kept in the dark as to the exact specifics of Apple's device. That has left some of them reluctant to make deals before learning all of the details.
The report noted that many executives expect to have more clarity after Wednesday's presentation at the Yerba Buena Center for the Arts in San Francisco, scheduled for 10 a.m. Pacific time, 1 p.m. Eastern.
"While some of the largest publishers may not be up on stage Wednesday," the report said, "their books could appear on the device when it is shipped in March.
However, Amazon allegedly takes a loss on e-books that sell for $9.99. The company loses about $4.50 on each sale in order to maintain its dominant position in the market.
While publishers would get $14.50 for a typical bestselling e-book from Amazon, Apple's model -- with the Cupertino, Calif., company taking a 30 percent cut -- would leave publishers with just $10.49.
"But there is nevertheless a strong draw: In adopting the Apple model, the balance of power would shift at least partly back to publishers, which regain control of pricing," the report said. "In setting higher prices, they could provide a level playing field for all e-book retailers. The potential for publishers is that the device may generate greater volume for e-book sales."
One publish executive surmised that book companies will be left with a choice to embrace Apple's device and hope it attracts more people to e-books, or stick with Amazon's model which offers greater revenue.
AppleInsider will have live coverage of Apple's product unveiling from San Francisco Wednesday. Be sure to visit live.appleinsider.com for up-to-the-minute updates from inside the Yerba Buena Center for the Arts.
A new report Tuesday evening from The Wall Street Journal claimed that Apple and book publishers are looking to hammer out a deal that would offer standard pricing with Apple taking a 30 percent cut of sales. The variable pricing structure would also allow some books to be priced at $9.99.
Specifically named in "serious negotiations" with Apple late Tuesday was HarperCollins, which was stated by the Journal weeks ago to have had talks with the hardware maker.
The report notes that Apple's approach is different from Amazon, which has focused on giving "bargain-basement prices" for books. Apple would rather charge a higher premium for its content, sources told the Journal. It said the tablet will create a major battle between Apple and Amazon over how books are priced and distributed.
It also said that while Apple would recommend prices of $12.99 and $14.99 for new bestsellers, publishers would be able to establish their own prices and "re-set the rules" with the tablet.
Book publishers have apparently been kept in the dark as to the exact specifics of Apple's device. That has left some of them reluctant to make deals before learning all of the details.
The report noted that many executives expect to have more clarity after Wednesday's presentation at the Yerba Buena Center for the Arts in San Francisco, scheduled for 10 a.m. Pacific time, 1 p.m. Eastern.
"While some of the largest publishers may not be up on stage Wednesday," the report said, "their books could appear on the device when it is shipped in March.
However, Amazon allegedly takes a loss on e-books that sell for $9.99. The company loses about $4.50 on each sale in order to maintain its dominant position in the market.
While publishers would get $14.50 for a typical bestselling e-book from Amazon, Apple's model -- with the Cupertino, Calif., company taking a 30 percent cut -- would leave publishers with just $10.49.
"But there is nevertheless a strong draw: In adopting the Apple model, the balance of power would shift at least partly back to publishers, which regain control of pricing," the report said. "In setting higher prices, they could provide a level playing field for all e-book retailers. The potential for publishers is that the device may generate greater volume for e-book sales."
One publish executive surmised that book companies will be left with a choice to embrace Apple's device and hope it attracts more people to e-books, or stick with Amazon's model which offers greater revenue.
AppleInsider will have live coverage of Apple's product unveiling from San Francisco Wednesday. Be sure to visit live.appleinsider.com for up-to-the-minute updates from inside the Yerba Buena Center for the Arts.
Comments
..publishers would be able to establish their own prices and "re-set the rules" with the tablet
So I guess we really should be calling the new Apple device a iReader Wallet Bleeder
So I guess we really should be calling the new Apple device a iReader Wallet Bleeder
Well this is for the e-new, hard cover versions after all. When the e-paper pack versions come out Apple will charge less
The publishers will be saving a ton without printing and distribution, and they're hoarding the 'savings'.
Stickin' with the real books. At least those I can pass on to others when I'm done.
Prices will come down eventually if e-reading really takes off and there is more competition from B&N, Amazon, etc.
What? Higher prices for content?
it's really not that high. actual hardcovers are 3 times that retail with discounts for perhaps the first two weeks.
the publishers have an investment in prepayment to the author and then often share the remaining profit with the author once that recovery is made. So it's not like it's all just money in the bank.
Once a solid market exists we'll likely get down to something like $10 for a 'new release' and $5 for 'backlist' with perhaps free first chapters being offered by publishers for some titles, especially newer authors.
What? Higher prices for content? You've got to be kidding me! If Apple does that I don't think I'll buy... and many millions will continue to buy books elsewhere. No doubt Amazon would be putting its Kindle Store on the tablet, so if Apple does that, I believe they're toast when competing with Amazon.
I don't know how long that would last if Amazon really is losing money on every sale. I think people should pursue whatever deal they can get while it lasts, but I don't think it's going to go on indefinitely.
NOW I AM CONVINCED IT WILL HAVE AN OLED DISPLAY. CAUSE BY GOLLY READING BOOKS ON LED LCD PANELS WILL ABSOLUTELY RUIN YOUR EYES.
"ABSOLUTELY RUIN YOUR EYES"
The MacBook Air (which I own) and the new iMac both have LED LCD and they tired your eyes after a while. This is simply not the way reading books was meant to be. Paper books are where its at. Best reading technology ever!
Well this is for the e-new, hard cover versions after all. When the e-paper pack versions come out Apple will charge less
If your done e-reading something, can one then sell the content to a e-used bookstore?
Perhaps dig old e-books out of the Trash and sell them to a used e-book store to make a little beer money?
Actually, it would be nice if it were just an open market. Let independents in and everything. AppStore model for books.
Also this is kinda funny in regards to this statement from Steve Jobs: “It doesn’t matter how good or bad the product is, the fact is that people don’t read anymore,” he said. “Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don’t read anymore.” -http://www.wired.com/gadgetlab/2008/01/steve-jobs-peop/#ixzz0dm2jKoeY
So I guess by raising the prices you are gonna get more book sales? I'm sorry that statement was a total Steve Ballmer, not Steve Jobs thing to say.
Hopefully charging more means we will get more. Interactive features?
What on earth are you talking about. When I read a Raymond Carver book I don't ask: "yeah, but where's the cool animations?" Books are for reading, end of.
This is going to be futuristic in how your interact with a digital magazine...
What on earth are you talking about. When I read a Raymond Carver book I don't ask: "yeah, but where's the cool animations?" Books are for reading, end of.
Duh. You know: the deleted scenes, the making ofs, author's commentary, plot cards, author's cut, alternative endings. All the value add stuff.
If this is true, piracy is going to be a HUGE problem. Obviously, the thing is going to have to be able to handle pdf's etc...Good luck to the publishers trying to rape everyone that much
I don't know what you read but the story indicates Apple has been pushing this and not necessarily the publishers.
Duh. You know: the deleted scenes, the making ofs, author's commentary, plot cards, author's cut, alternative endings. All the value add stuff.
Yeah right. You say value add, I say extra stuff to drain your wallet for that means.
If your done e-reading something, can one then sell the content to a e-used bookstore?
Perhaps dig old e-books out of the Trash and sell them to a used e-book store to make a little beer money?
That's the thing, you can resell packaged media (CD, DVD, books). The electronic versions of each broke that model. And it required a more expensive player device. It always felt like a cost-shift, the way I figure it, the media industry seems to makes a bigger net profit and the user has to buy more expensive equipment to use it.
If this is true, what is Apple smoking. #1, I but most of my books paperback at $7 dollars or so most of the time, odd that I pay $15 a book but regardless those books (especially hardcovers) can be resold. I already have question about the $10 at Kindle, Nook etc... Especially when you can't transfer the book to a friend when your done etc..
The thing is, when it's released at the same time as the hard covers, there won't be a paperback available for a while. There might be a cost reduction when the paperback comes out. Now, if they still keep the same price despite the paperback, then they're smoking something.
Also this is kinda funny in regards to this statement from Steve Jobs: ?It doesn?t matter how good or bad the product is, the fact is that people don?t read anymore,? he said. ?Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don?t read anymore.? -http://www.wired.com/gadgetlab/2008/01/steve-jobs-peop/#ixzz0dm2jKoeY
So I guess by raising the prices you are gonna get more book sales? I'm sorry that statement was a total Steve Ballmer, not Steve Jobs thing to say.
Yeah, I thought that was total BS. I recall that the book industry was something like the size of the music and movie industries combined, at least in 2008. But you can't compare the cost of a download release during the hardcover release phase against the softcover price.