Originally Posted by dasanman69
Was it written in invisible ink? I didn't see a second part. Apple couldn't possibly sell music at a loss because he never buys it in the first place. They set the price 99¢ for a song of which Apple gets 30% of, the music industry resisted but finally gave in to Apples model. So now its Amazon telling publishers what price they want to sell e-books at and because Apple can't make money with that business model it has joined with the publishers to create a business model that benefits Apple.
Sorry, it was from the quote you quoted:
Originally Posted by SolipsismX -- "This begs the question: Why isn't the DoJ interested in Amazon using it's monopoly position to sell at a loss to keep competitors out of the market?"
By your same logic that Apple never buys music, can it be said that amazon never buys ebooks?
To complete the previous comparison, if Apple paid studios their $.66 and sold the song for $.50 it would be similar to what amazon has been pulling off. There'd have to be a related product that Apple was using to make up the difference. Now Apple is applying the same model it uses for music to books. The only difference I see is they aren't selling you chapters out of the book like they sell tracks from CDs.
Frankly, with the number of tech books I used to buy, I'd much rather just buy the chapters that pertain to what I need to know. This is the reason I have an unlimited subscription service from safaribooksonline.com.
I don't see evidence (yet) where Apple colluded the publishers to restructure the deal with amazon. I don't see price fixing between publishers or tiered pricing that the DoJ says "could" happen. I think the conclusion that because average price went up there has to be price fixing and collusion isn't a sure thing. Apple entering the eBook segment did result in the publishing houses gained leverage against amazon and amazon has to react by innovating and differentiating.
I think the DoJ is conveniently not pointing out that amazon didn't have much competition in the ebook biz they pioneered because it's bad for their case. Amazon's pricing model was a deterrent to competitors because of the lack of an online market or a tablet with a substantial user base. Along comes Apple and the publishing houses welcomed a new distributor.