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Amazon concedes, grants $13-$15 e-book prices to Macmillan

post #1 of 74
Thread Starter 
Days after Apple CEO Steve Jobs introduced the iPad and implied e-book prices would go up, Amazon gave in to a standoff with book publisher Macmillan, raising prices to between $12.99 and $14.99.

This weekend, Amazon had temporarily ceased selling titles from Macmillan as a pricing dispute between the two companies found no resolution. But Sunday, Amazon conceded and posted an announcement on its Kindle Community forums.

Calling Macmillan one of the "big six" publishers, Amazon said the company "clearly communicated" that they want to charge between $12.99 and $14.99 for e-book versions of bestsellers and most hardcover releases. Though Amazon strongly disagrees with Macmillan's stance, they raised the white flag.

"We want you to know that ultimately, however, we will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books," the announcement said. "Amazon customers will at that point decide for themselves whether they believe it's reasonable to pay $14.99 for a bestselling e-book.

"We don't believe that all of the major publishers will take the same route as Macmillan. And we know for sure that many independent presses and self-published authors will see this as an opportunity to provide attractively priced e-books as an alternative."

Just before the iPad launch, some book publishers told The Wall Street Journal they had talks with Apple over e-book pricing on the iPad. Those negotiations would allegedly price new hardcover bestsellers at $12.99 and $14.99.

Immediately after Wednesday's iPad announcement, Jobs spoke with journalist Walt Mossberg about e-book pricing. He said the iPad and Amazon Kindle would offer "the same" prices on e-books, but did not elaborate. Prior to Amazon's dispute with Macmillan, new e-books cost $9.99 on the Kindle.

"Publishers are actually withholding their books from Amazon, because they're not happy with it," Jobs said to Mossberg.

On Sunday, when Amazon pulled Macmillan books from its online store, titles from the company could only be purchased through third-party retailers. The dispute could foreshadow the pricing structure to come in Apple's new iBookstore for the iPad.
post #2 of 74
Apple shaking things up again eh!!!
post #3 of 74
Quote:
Originally Posted by AppleInsider View Post

Days after Apple CEO Steve Jobs introduced the iPad and implied e-book prices would go up, Amazon gave in to a standoff with book publisher Macmillan, raising prices to between $12.99 and $14.99.

{fanboi}I'm GLAD the price of ebooks is going up, so that the authors will bring us more and more ebooks! Way to go Macmillan! {/fanboi}
post #4 of 74
Noisy not-anyone. About 1/4 of HarperCollins in sales.
P.S. Well, the regular capitalism knows how to deal with problems like that; philanthropic one does not.

We mean Apple no harm.

People are lovers, basically. -- Engadget livebloggers at the iPad mini event.

Reply

We mean Apple no harm.

People are lovers, basically. -- Engadget livebloggers at the iPad mini event.

Reply
post #5 of 74
Quote:
Originally Posted by AppleInsider View Post

Days after Apple CEO Steve Jobs introduced the iPad and implied e-book prices would go up, Amazon gave in to a standoff with book publisher Macmillan, raising prices to between $12.99 and $14.99.


But seriously folks, the 30% to 50% increase in price for a nascent category does not bode well for mass acceptance. Time will tell.
post #6 of 74
That sure was quick.
post #7 of 74
Quote:
Originally Posted by zindako View Post

Apple shaking things up again eh!!!


Yeah, it's all I wanted, for a company to force another company to raise their prices. Just fucking great! Wasn't capitalism supposed to work the other way around?

(don't try to lecture me on capitalism, that was just rhetorical rant)
post #8 of 74
Quote:
Originally Posted by luisdias View Post

yeah, it's all i wanted, for a company to force another company to raise their prices. Just fucking great! Wasn't capitalism supposed to work the other way around?

I own U
post #9 of 74
Quote:
Originally Posted by LuisDias View Post

Yeah, it's all I wanted, for a company to force another company to raise their prices. Just fucking great! Wasn't capitalism supposed to work the other way around?

(don't try to lecture me on capitalism, that was just rhetorical rant)

totally agree with your comment.

I don't see why we should rejoice, shame on apple!
post #10 of 74
WAR IS PEACE
FREEDOM IS SLAVERY
IGNORANCE IS STRENGTH.

I love Apple, but this iPad is a scam..

It's obvious that to answer people's whining over an "Apple Tablet" Jobs and Co. decided to throw a large screen iPod Touch at them. All the while creating a new stream of income in which to sell content... basically the SAME content. Now, because of this "pacifier" prices are being raised!

The iPad could have been so much more

Although, the deal with AT&T IS a great thing... why couldn't it have been done with the iPhone from the start? (Like I've always said)

Prepaid option - $30 for unlimited data and tiered pricing for minutes. *No Contracts*
post #11 of 74
Hey can anyone create a book and sell it using the same GUI as the Apple store uses on the book shelf thingy? Or is that reserved for these big wig publishers?
post #12 of 74
LOL Amazon is run from Cupertino.

Win.
post #13 of 74
Here's the article about it in the NYTimes.

What I can't understand is that under the new arrangement, Amazon will get 30% of the proceeds from ebooks, whereas previously they had been purchasing rights wholesale from the publisher for half list price, and selling the ebooks at a loss. Now Amazon will be making more and Macmillan less, according to the Times' math. So how is this a loss for Amazon?

"Book publishers, meanwhile, are volunteering to limit their digital profits. In the model that Amazon prefers, publishers typically collect $12.50 to $17.50 for new e-books. Under the new agency model, publishers will typically make $9 to $10.50 on new digital editions."
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Hey, this Kool-Aid is delicious, what do you put in it?!
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post #14 of 74
Competition works two ways. If there is only one shop they have a lot of power, Amazon could have been over charging and Macmillian could do little about it. Now with the iPad Amazon has competition and Macmillian has the upper-hand because the tail cannot wag the dog but...

When Apple dominates as with the ITMS, Macmillian will find it harder.
Wll I have my G5 so I am off to get a life; apart from this post...
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Wll I have my G5 so I am off to get a life; apart from this post...
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post #15 of 74
I know that the costs for printing and shipping books is not a huge part of the selling price, but the benefits of a book as opposed to an electronic document (I'm going to insist that books are bound, physical objects) are more than worth the small price premium they ask for it.

On the other hand, I see benefit in the Kindle and other e-readers in using them for documentation and manuals.
post #16 of 74
Quote:
Originally Posted by LuisDias View Post

Yeah, it's all I wanted, for a company to force another company to raise their prices. Just fucking great! Wasn't capitalism supposed to work the other way around?

(don't try to lecture me on capitalism, that was just rhetorical rant)

What if (and this isn't a what-if, it's a repeating of the reality behind the article for those skip it straight to Apple bashing/worship).....

Macmillan was not happy with e-book sales on Amazon? They felt prices were too low. People opting for ebooks instead of physical books brings overall revenue down, and Amazon's previous idea of sharing revenue, was impacting the publisher's and author's income. (Yeah I know, Boo hoo big greedy authors and publishers, how dare they demand compensation for their creativity...)

Sounds like Amazon went uber-anti competitive (which is all Amazon has ever done, ask any merchant with an account on Amazon who has had their sales stolen by Amazon cloning their inventory and dropping the prices by a 1/3), and rejected Macmillan, thinking, "Where else are they going to go? We're IT buddy."

Not anymore you're not. iBooks hasn't even hit the public and already Amazon has backtracked its terrible mistake. For a hardcover book, I think 50% of its physical companion is a great model for everyone. There is still money to be made, and people get the convenience of the a library of books inside a 1.5 lb device. All of it half the price it used to cost.

This is what you call a win/win situation.

Amazon is what you call the worst successful retail company in the world. They are the digital Walmart. Scum of the earth.
post #17 of 74
Quote:
Originally Posted by zindako View Post

Apple shaking things up again eh!!!

Quote:
Originally Posted by Addison View Post

Competition works two ways.

There he goes explaining how capitalism works....

They are pricing the books at the same price as physical books, as if they had the same issues. This is just wrong. And these guys wonder why piracy is big in music and video?!? Now they are about to repeat the same mistake on books! Congrats, you losers, you're just about to create the next big p2p piracy market: e-books!

Do these guys never learn? Don't they know that a collection of a thousand good books is 50/100MB? Don't they know they are digging their own grave?

Ahh shit.
post #18 of 74
Quote:
Originally Posted by andyapple View Post

Here's the article about it in the NYTimes.

What I can't understand is that under the new arrangement, Amazon will get 30% of the proceeds from ebooks, whereas previously they had been purchasing rights wholesale from the publisher for half list price, and selling the ebooks at a loss. Now Amazon will be making more and Macmillan less, according to the Times' math. So how is this a loss for Amazon?

"Book publishers, meanwhile, are volunteering to limit their digital profits. In the model that Amazon prefers, publishers typically collect $12.50 to $17.50 for new e-books. Under the new agency model, publishers will typically make $9 to $10.50 on new digital editions."

I'll be happy to explain. Amazon was never interested in making money off the ebooks they sell. They were interested in:

1. Being the cheapest and most convenient medium.
2. Selling you an insanely over priced Kindle.
3. Selling you a hundred dollars worth of crap you didn't come to Amazon to buy, because your subconscious is sucking in the 500 products on each page that Amazon somehow knows you really want.
post #19 of 74
Quote:
Originally Posted by NotRs View Post

I love Apple, but this iPad is a scam..

It's obvious that to answer people's whining over an "Apple Tablet" Jobs and Co. decided to throw a large screen iPod Touch at them. All the while creating a new stream of income in which to sell content... basically the SAME content. Now, because of this "pacifier" prices are being raised!

The iPad could have been so much more
*

I could not agree with you more. I think you nailed it. This iPad thing has got me feeling like Apple is becoming (or at least revealing) that they are really no different than any other major corporation - price fixing, profit margins, & control. Don't get me wrong, there are a lot of great things Apple has done, but really folks... can SJ really say this has been the best work of his life???? Really?

It is just a glorified iPod Touch. And now this whole price thing. I was hesitant about buying one before, but now I am turning. It is all a game and we are just pawns. I'm getting off at the next bus stop.
post #20 of 74
Quote:
Originally Posted by pmz View Post

Not anymore you're not. iBooks hasn't even hit the public and already Amazon has backtracked its terrible mistake. For a hardcover book, I think 50% of its physical companion is a great model for everyone. There is still money to be made, and people get the convenience of the a library of books inside a 1.5 lb device. All of it half the price it used to cost.

This is what you call a win/win situation.

YEah, win win. Because all I wanted for a product that takes practically zero effort to sell (download 100kb, frontcovers included?!?) is for it to rise to 15 bucks a piece. Really. Win win??!? Ahh come on. This is just begging for piracy.

Quote:
Amazon is what you call the worst successful retail company in the world. They are the digital Walmart. Scum of the earth.

Yeah, scum bastards, trying to bring prices down for us consumers, how dare they!
post #21 of 74
Quote:
Originally Posted by pmz View Post

I'll be happy to explain. Amazon was never interested in making money off the ebooks they sell. They were interested in:

1. Being the cheapest and most convenient medium.
2. Selling you an insanely over priced Kindle.
3. Selling you a hundred dollars worth of crap you didn't come to Amazon to buy, because your subconscious is sucking in the 500 products on each page that Amazon somehow knows you really want.

I'll buy that.

Funny though, Apple's strategy is sorta similar: they claim to be only breaking about even from iTunes and apps, they make their killing from large margins on hardware. Though I do think the iPad represents much greater value over the Kindle!

As to Macmillan's strategy, I think they are really cutting their nose etc... The ebook market represents a case in which profits rise astronomically with volume, as there is virtually no overhead for each additional unit sold.

Then again, I can see there being an issue with a company such as, say, McGraw Hill, because textbooks typically sell at pretty steep prices. There is no way they are going to sell even as ebooks at $9.99, given the high cost of creation.
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post #22 of 74
Quote:
Originally Posted by Quadra 610 View Post

LOL Amazon is run from Cupertino.

Win.

It is fine if you want to be a cheerleader for everyting Apple does, but don't call increased prices a 'Win'.
post #23 of 74
Quote:
Originally Posted by LuisDias View Post

YEah, win win. Because all I wanted for a product that takes practically zero effort to sell (download 100kb, frontcovers included?!?) is for it to rise to 15 bucks a piece. Really. Win win??!? Ahh come on. This is just begging for piracy.



Yeah, scum bastards, trying to bring prices down for us consumers, how dare they!

What are you talking about? Do you even know? Amazon is putting other retailers OUT of business. No, prices should not continue to come down on everything as fast as Amazon and Walmart can push it. Only someone under the age of perhaps 16 might think this way, before getting out into the world and realizing things have to cost money or people won't (can't) make them.

Books that cost $26 in stores, will cost half that on iBooks and Amazon. HALF. Its the same BOOK! No you can't lug it around, or ruin in with your hands, or re-sell it (only downfall of ebooks), or keep it and stare it on your shelf.

You want to pirate stuff? Go ahead. It's illegal, and it's wrong. It also doesn't matter. Every song and movie imaginable can be found illegally for free. Or you can buy it legally.

The number of people purchasing from iTunes everyday indicates what people are willing to do, even with free and easy theft at their finger tips.

Quote:
Originally Posted by andyapple View Post

I'll buy that.

Funny though, Apple's strategy is sorta similar: they claim to be only breaking about even from iTunes and apps, they make their killing from large margins on hardware. Though I do think the iPad represents much greater value over the Kindle!

and therein lies the success of the business model.

Apple has effectively said, Amazon and iBooks will be the same, but the Kindle and iPad, are anything but. Your choice.
post #24 of 74
Quote:
Originally Posted by Bluefyre View Post

It is fine if you want to be a cheerleader for everyting Apple does, but don't call increased prices a 'Win'.

It IS a win, because you petulant children that call yourself "consumers" are not all important, and are not entitled to anything.

I'll never understand how little any of you appreciate anything creative in the world. Printed works of Fiction are some of the most precious contributions to society that have ever existed. You people would rather STEAL them, than pay 50% of what they have always cost, for as long as I've been purchasing books.

unreal.
post #25 of 74
Quote:
Originally Posted by NotRs View Post

WAR IS PEACE
FREEDOM IS SLAVERY
IGNORANCE IS STRENGTH.

I love Apple, but this iPad is a scam..

It's obvious that to answer people's whining over an "Apple Tablet" Jobs and Co. decided to throw a large screen iPod Touch at them. All the while creating a new stream of income in which to sell content... basically the SAME content. Now, because of this "pacifier" prices are being raised!

The iPad could have been so much more

Although, the deal with AT&T IS a great thing... why couldn't it have been done with the iPhone from the start? (Like I've always said)

Prepaid option - $30 for unlimited data and tiered pricing for minutes. *No Contracts*


Apple is using toys and games to teach us students a new user interface for a new computing platform. Once the pieces are in place (an abundance of software), Apple will introduce a Macbook Touch. It will have ports, a camera, be a stand alone product that backs itself up to time capsule, it will have a large hard drive... If they introduced it now, it wouldn't sell. But a big iPod will.
post #26 of 74
Quote:
Originally Posted by pmz View Post

Books that cost $26 in stores, will cost half that on iBooks and Amazon. HALF. Its the same BOOK! No you can't lug it around, or ruin in with your hands, or re-sell it (only downfall of ebooks), or keep it and stare it on your shelf.

Do you even stop and read what you've written or are you just too busy being arrogant and insulting people?

You listed several reasons why eBooks SHOULD cost less than their printed counterparts:
  • No printing fees.
  • Low distributions fees (shipping and all that).
  • DRM so they can't be shared.


Quote:
and therein lies the success of the business model.

Apple has effectively said, Amazon and iBooks will be the same, but the Kindle and iPad, are anything but. Your choice.

Yes, it's just f__king wonderful that Apple can FORCE the prices of content higher to make their own product more attractive. That they can FORCE part of the playing field to be leveled so that the rest that was already in their favor stands out.

Such a win for consumers...
post #27 of 74
Quote:
Originally Posted by PatsFan83 View Post

That sure was quick.

not really. Amazon had no power in this game. they are a storefront, not the publisher. The publisher owns the titles, has all the power in saying what stores do and don't get. Unless there was a legally binding contract that set the prices and a period of time which was not over, Amazon had only two choices, carry the titles at the publisher's price or not. They tried not. Then realized that the publisher has choices (including direct sales) and they were only hurting themselves. The smartest comment they made was that it was up to the market to decide if the publisher is right or wrong.

That said, depending on the title, you are still saving a fair chunk of change at $15 a book compared to what you pay for a physical one. So perhaps the market will go with the pricing. We shall see
post #28 of 74
Quote:
Originally Posted by Atanner View Post

Apple is using toys and games to teach us students a new user interface for a new computing platform. Once the pieces are in place (an abundance of software), Apple will introduce a Macbook Touch. It will have ports, a camera, be a stand alone product that backs itself up to time capsule, it will have a large hard drive... If they introduced it now, it wouldn't sell. But a big iPod will.

This is 100% correct. The product that all the haters really want, is coming.

Remember, the iPad was not given the "i" moniker for no reason.

Mark my words, there is "Mac" monikered product with multi-touch in the works as well. It won't cost anywhere near $500, and nor should it.
post #29 of 74
Quote:
Originally Posted by caliminius View Post

Do you even stop and read what you've written or are you just too busy being arrogant and insulting people?

You listed several reasons why eBooks SHOULD cost less than their printed counterparts:
  • No printing fees.
  • Low distributions fees (shipping and all that).
  • DRM so they can't be shared.




Yes, it's just f__king wonderful that Apple can FORCE the prices of content higher to make their own product more attractive. That they can FORCE part of the playing field to be leveled so that the rest that was already in their favor stands out.

Such a win for consumers...

When you're trying to criticized Apple's online content distribution prices, its very easy to ignore the fact that THEY are sole reason we have $0.69 - $1.29 songs, and $1.99 tv shows. Not to mention $4.99 movies that are not new releases.

But I guess those prices are too high for you.
post #30 of 74
I thought that this "higher price" means that they will sell the new books for this higher price, and then slowly the price goes down.
They basically want a 4.99 to 14.99 price range.
Amazon is trying to keep the price at 9.99 at all times from what i've gathered from the other thread on AI.
post #31 of 74
Quote:
Originally Posted by r u serious View Post

It is just a glorified iPod Touch. And now this whole price thing. I was hesitant about buying one before, but now I am turning. It is all a game and we are just pawns. I'm getting off at the next bus stop.

Do you think that the iPad will be remembered as Apple jumping the shark?
post #32 of 74
Quote:
Originally Posted by pmz View Post

I'll be happy to explain. Amazon was never interested in making money off the ebooks they sell. They were interested in:

1. Being the cheapest and most convenient medium.
2. Selling you an insanely over priced Kindle.
3. Selling you a hundred dollars worth of crap you didn't come to Amazon to buy, because your subconscious is sucking in the 500 products on each page that Amazon somehow knows you really want.

Amazon kind of lost sight of their business model when they started tailoring their content prices to sell Kindle. Oh they said that they won't twist their model to favor Kindle but then they went ahead and did it.

It would be wise of them to get out of the hardware business seeing as they can't maintain their discipline and are being blinded by the gazillions of $$$$ that they see Apple stockpiling. They are not and will never be a hardware company. They are risking their whole business by succumbing to the siren song of hardware profits. If the walking, talking ego bloat over at Techcrunch was able to accept that hardware is not their thing, surely Amazon, who heretofore always had its feet firmly planted on the ground, should be able to make that admission as well.
post #33 of 74
An author about Amazon's role and what their objectives were:

"From the point of view of Jeff Bezos' bank account, Amazon is the entire supply chain and should take that share of the cake that formerly went to both wholesalers and booksellers. They do this by buying wholesale and selling retail, taking up to a 70% discount from the publishers and selling for whatever they can get. Their stalking horse for this is the Kindle publishing platform; they're trying to in-source the publisher by asserting contractual terms that mean the publisher isn't merely selling them books wholesale, but is sublicencing the works to be republished via the Kindle publishing platform. Publishers sublicensing rights is SOP in the industry, but not normally handled this way -- and it allows Amazon to grab another chunk of the supply chain if they get away with it, turning the traditional publishers into vestigial editing/marketing appendages.

The agency model Apple proposed -- and that publishers like Macmillan enthusiastically endorse -- collapses the supply chain in a different direction, so it looks like: author -> publisher -> fixed-price distributor -> reader. In this model Amazon is shoved back into the box labelled 'fixed-price distributor' and get to take the retail cut only. Meanwhile: fewer supply chain links mean lower overheads and, ultimately, cheaper books without cutting into the authors or publishers profits."


THIS is why publishers are willing to buck Amazon. This was also a friction point between Apple and music companies.


"(Note that Amazon have been trying to grab a larger share of the cake by dipping into the publishers -- and the authors -- share of what meagre profits there are (book publishing is notoriously, uniquely unprofitable, within the media world), even though they've already got the wholesale and retail supply chains stitched up. Their buy wholesale/sell retail model screws publishers' ability to manage their cash flow and tends to induce price wars on the supply side, which is okay if we're talking widgets with a range of competing suppliers, but books are individually unique products and the industry already runs on alarmingly narrow margins: this isn't the music or movie biz.)"


"It's interesting to note that unlike the music industry who had to be pushed, the big publishers seem to be willing to grab a passing lifeline."

http://www.antipope.org/charlie/blog...outsiders.html

Apple, in NOT screwing over content producers provides a sustainable ecosystem for ebooks and authors. Amazon was no consumer's advocate.

Another Author's take:

http://www.sfwa.org/2010/01/why-my-b...com/#more-7406
post #34 of 74
Quote:
Originally Posted by pmz View Post

It IS a win, because you petulant children that call yourself "consumers" are not all important, and are not entitled to anything.

Are you a Stalinist? Capitalism, when it works properly, results in in low prices for consumers. That has been known since the time of Adam Smith.

Here, a duopoly situation exists, and fanbois are falling all over themselves to convince themselves that it is a Good Thing.

I say bring on the competition.
post #35 of 74
Quote:
Originally Posted by pmz View Post

This is 100% correct. The product that all the haters really want, is coming.

Cool. But that is what we were told for years, and were disappointed last Wednesday. Maybe next time Apple will get it right?

In the meantime, it looks like we'll have our choice of fully-realized products coming soon. Lots of competent manufacturers are announcing Android tablets for the rest of us.

It will be interesting to see the Win7 touchscreen devices, but likely the interface will be a kludge, given that Win7 is designed for a keyboard and mouse. That's why I'm more interested in Android tablets.
post #36 of 74
Quote:
Originally Posted by pmz View Post

When you're trying to criticized Apple's online content distribution prices, its very easy to ignore the fact that THEY are sole reason we have $0.69 - $1.29 songs, and $1.99 tv shows. Not to mention $4.99 movies that are not new releases.

But I guess those prices are too high for you.

Why are your guesses so often wrong?

He's not talking about "Apple's online content distribution prices". He's referring to a subset: Apple's eBook prices.
post #37 of 74
Quote:
Originally Posted by caliminius View Post


Yes, it's just f__king wonderful that Apple can FORCE the prices of content higher to make their own product more attractive. That they can FORCE part of the playing field to be leveled so that the rest that was already in their favor stands out.

Such a win for consumers...

Yes, just like the death of professional, properly reported, multi-sourced and fact-checked journalism and the rise of hack reportage of a thousand and one 'news' articles based on a single unverified source is a win as well.
post #38 of 74
Quote:
Originally Posted by pmz View Post

What are you talking about? Do you even know? Amazon is putting other retailers OUT of business. No, prices should not continue to come down on everything as fast as Amazon and Walmart can push it. Only someone under the age of perhaps 16 might think this way, before getting out into the world and realizing things have to cost money or people won't (can't) make them.

And only someone under the age of 6 doesn't understand that this is what happens when you have a mature capitalist market, see Russell's paradox. So you are mostly complaining against the capitalistic system, boo hoo, go get yourself a revolt and communize the whole country.

Quote:
Books that cost $26 in stores, will cost half that on iBooks and Amazon. HALF. Its the same BOOK! No you can't lug it around, or ruin in with your hands, or re-sell it (only downfall of ebooks), or keep it and stare it on your shelf.

Quite a trade-off. It means that everytime I lose my iPad, bang, I lose my library. And it seems I can't lend or borrow. And it seems I can't decorate my wall. No, if it's just bytes, it's lame. If one pirates this stuff, at least they do with it everything they want to. I mean, this is the same shit that we've been through in the music debacle!

Quote:
You want to pirate stuff? Go ahead. It's illegal, and it's wrong. It also doesn't matter. Every song and movie imaginable can be found illegally for free. Or you can buy it legally.

It's illegal, not wrong. I am not interested in pirating. I was more interested in having a good retailing experience, an ease of access to good books with "just works" polish in it. I like that, I'm willing to buy that kind of experience. I am not willing to bend over for it though.

Quote:
The number of people purchasing from iTunes everyday indicates what people are willing to do, even with free and easy theft at their finger tips.

iTunes doesn't place "physical" musics against "byte" musics: either DVD or CDs, they are all bytes. A book is physical, and I don't need to charge it. I don't need a fancy software to turn the page (and go woooow because it looks so much as the real thing).

Worse, books are measly 100kb.

Quote:
and therein lies the success of the business model.

Music costs 1 buck. Success. Movies? Where is the success of movies in iTunes? Haven't seen it.

Quote:
Apple has effectively said, Amazon and iBooks will be the same, but the Kindle and iPad, are anything but. Your choice.

Oh ok, sure about that. That's why Amazon ducked. Doesn't mean we should applaud the bucks raise.
post #39 of 74
Quote:
Originally Posted by iGenius View Post

Are you a Stalinist? Capitalism, when it works properly, results in in low prices for consumers. That has been known since the time of Adam Smith.

Here, a duopoly situation exists, and fanbois are falling all over themselves to convince themselves that it is a Good Thing.

I say bring on the competition.

Capitalism means that consumers should get to pay the lowest price possible?!!? Since when.

Capitalism wasn't meant for the consumer... it was meant for the manufacturer and the supply chain.

If someone along the supply chain is messing up the price structure by undercutting everyone with lowball prices then something, somewhere has to give. We see it happen all of the time. Walmart's effect on the retail market is a good example. In the beginning it always looks like the consumer is winning. In the end, though, it becomes obvious that the damage caused by lowball pricing is a very bad to the overall marketplace.

Apple saw this crack in the foundation and decided to take advantage of it. Unfortunately, once you give the consumer something it's very hard to take it away so only time will tell if this strategy will work.
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post #40 of 74
E-books are going to be the new piracy target, especially when it blows up. Publishers are trying to milk the most money they can out of consumers by setting prices artificially high to pad their bottom line.

Id love to see how much they are going to charge for school textbooks, cause i'll take free if it isnt reasonably priced and im sure the younger generations will as well.
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