Steeper Prices for Ebook Users: Macmillan’s New Model
Giant online retailer Amazon.com recently stopped the selling of Macmillan titles. Macmillan is considered as one of the top 6 publishers worlwide. Amazon had to resort to this action as a result of a disagreement on the consumer’s price for Amazon Kindle and ebook users. According to a notice at Amazon.com, the Kindle Team wrote that they would sooner or later have to accept the Macmillan terms, because they want to give the customer the option. Macmillan’s titles will range from $5.99 to $14.99.
The Macmillan group states that they will actually generate less profit while Amazon makes more using the digital agent model. The retailer (Amazon) will receive 30% commission from the ebook sales. The physical book industry has followed an agency model that has provided profit to all involved, and Macmillan states that the digital market needs a model to follow as well.
It is true that the publisher, retailer, author and/or illustrator is in business to generate money. This monopoly, however, will hurt the customer in the long run.
Amazon’s temporary exclusion of Macmillan titles is to express their disagreement on the cost, and according to Macmillan’s CEO, the miscommunication is about the long term market. Obviously the retailer and publisher have different view points. Amazon believes that other publishers won’t follow Macmillan’s move. But since it is clearly for their gain, what would hold other publishers back?
If we look at the tangible book market, a consumer who wants to buy the newest and best hard cover books will do so. If the desire can be tamed, then they may wait for the cost to take a bit of a dive. The issue is, why should things be any different in the digital book market?
A boycott against Macmillan is perhaps a suitable response, but, would it really last? Once a reader is tempted by a new title from one of Macmillan’s brilliant writers, the cost doesn’t have much weight any longer.
The consumer will continue to buy what feeds their reading habit. The simple pleasures of reading a book has become convenient and so accessible by using Kindle technology. This alone is enticing, and when you add a new Macmillan book, reading enthusiast will bite. We haven’t been able to fight the urge when it’s time for an exciting read.
Amazon has over 400,000 titles available so even if Macmillan ebook prices are steeper than the $9.99 ebook cost that Amazon would like to stick to, the Kindle owner still has a wide range of ebooks to choose from. Visit us to find out what else the Amazon Kindle has to offer and why it is the best-selling ebook reader today.
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