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Amazon Drops Banhammer on McMillan Books in Kindle Pricing Dispute

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A lot of book publishers are upset at Amazon over Kindle pricing. Amazon got into it with Macmillan books, and has not only decided to remove all their titles from Kindle...they removed all their physical books from Amazon.com as well.

If you woke up this morning and tried to order any of the countless Macmillan titles on Amazon you were out of luck. In the midst of a dispute over Kindle pricing, Amazon decided to pull a preemptive strike and remove all Macmillan books including physical ones.

The dispute is over who gets to set book prices and specifically prices for hardcover books. Amazon seems to think it should be in charge of prices and not book publishers while book publishers understandably disagree.

Still, this seems pretty crazy to me. Macmillan is one of the biggest US publishers (imprints include Farrar, Straus & Giroux, Tor/Forge, Henry Holt, and St. Martin’s Press) and pulling their physical books as well as Kindle books feels like a pretty weird and authoritarian move. Will it remind book consumers of Kindle’s recent problems remotely deleting e-books people had already purchased?

And what will book buyers do? Buy a different book? Go to a different online retailer? Maybe walk outside of the house and visit an actual book store? Hmm, might go do that myself…

Update

Some Macmillan authors weigh in with their thoughts: Cory Doctorow and John Scalzi, who had this to say

If nothing else, this bit of asshattery on the part of Amazon has well and truly cured me of any desire to ever get a Kindle. If Amazon is willing to play chicken with my economic well-being — and the economic well-being of many of my friends — to lock up its little corner of the ebook field, well, that’s its call to make. But, you know what, I remember people who are happy to trample my ass into the dirt as they’re rushing to grab at cash.​

Update 2

The CEO of Macmillan, John Sargent, has posted a letter with his point of view:

This past Thursday I met with Amazon in Seattle. I gave them our proposal for new terms of sale for e books under the agency model which will become effective in early March. In addition, I told them they could stay with their old terms of sale, but that this would involve extensive and deep windowing of titles. By the time I arrived back in New York late yesterday afternoon they informed me that they were taking all our books off the Kindle site, and off Amazon. The books will continue to be available on Amazon.com through third parties…​
http://thefastertimes.com/fiction/2010/01/30/amazon-pulls-all-macmillan-books-in-kindle-dispute/

This makes no sense. Why in the hell would Amazon escalate this when other e-book readers are knocking at the gates?
 
What was amazons position? I remember several years back in the UK there was an 'accord' which came to an end which basically stopped book publishers setting retail prices. Nowadays we can usually get hardbacks at a decent discount

so I don't want to throw the blame at amazon until I hear more details

although.. I hope amazon isn't trying to force fixed pricing or anything. It's retail - publishers should set a wholesale price that amazon pays, amazon should be free to choose what markup to add
of wholesalers aren't discounting ebooks enough compared to physical ones, then they'll be overpriced and won't sell.
 
I admittedly don't have the specifics, but at first blush this seems like a dick move on Amazon's part, especially in how unilateral it is. It makes me sad because in general I think they're a good site.
 
Be sure and read the linked articles by Cory Doctorow and John Scalzi too. They deal with a lot of issues like DRM too. It's interesting stuff.

I think Amazon was trying to go for fixed pricing at $10. Macmillan was trying to go with pricing from $14.99 to $5.99, with the $14.99 to $12.99 prices for brand-new books that were still in hardcover.
 
More details would be nice, but in all likely hood I'm gonna be behind amazon on this one. The book publishers haven't learned anything from the music industry and will have to be dragged kicking and screaming into the 21st century.
 
Vaporak said:
The book publishers haven't learned anything from the music industry and will have to be dragged kicking and screaming into the 21st century.

Yep, I'm with you on this one. Amazon probably want a standard pricing structure, similar to iTunes with the 'every song is 99 cents' that Apple fought for for years.
 
having gone through school, I'm not on the side of publishers, as the current publishing model, especially of text books is to overprice texts, and constantly reprint new editions that are essentially the same content with superficial additions.

You can imagine what the download music model would have been like had the records won that battle with apple.

It's too bad Amazon isn't nearly in the kind of dominant position to bargain with these publishers. I prefer standardized pricing controlled by a 3rd party, like Apple or Amazon, whose best interest is volume sales so they can increase the user base, get people downloading, and earn their cut (therefore to offer the lowest prices possible) instead of the publishers, whose interest is to sell their product for the highest prices that customer can bear.
 
Vaporak said:
More details would be nice, but in all likely hood I'm gonna be behind amazon on this one. The book publishers haven't learned anything from the music industry and will have to be dragged kicking and screaming into the 21st century.
So publishers should just roll over because one large digital retailer wants them to set prices that will cannibalize their other forms of distribution? They're also worried about devaluing intellectual property, which I think is a valid concern.
 
I'm guessing it's because Amazon don't want to be pressured by the publishers. They have their business model and they stick to it. They give the publishers too much room to squeeze, soon all of them will be demanding the same thing, and then their business model is down the drain.

It's a statement from Amazon to the other publishers as much as anything.

It's a shame, because everyone loses when this happens. Amazon loses out on a bit of revenue, publishers miss out on revenue, and customers miss out on content.

I'm guessing AMazon feel they have to make this statement, and that they can afford to (at least for now), hoping they come crawling back. Who knows, Amazon haven't released sales numbers, maybe they can retaliate by showing numbers and showing exactly how much revenue a publisher can miss out on.
 
Vaporak said:
More details would be nice, but in all likely hood I'm gonna be behind amazon on this one. The book publishers haven't learned anything from the music industry and will have to be dragged kicking and screaming into the 21st century.

The music industry situation was pretty different though.

For one thing, they burned a lot of consumers by getting fat for years by basically discontinuing the widespread distribution of singles, and trying to force consumers instead to purchase whole albums usually full of filler, when the consumers usually just wanted the one or two good tracks on an album. Many consumers felt justified stealing the stuff after being screwed so many times on an album purchase. I don't know if that's the case so much with books.

Still, it's definitely true--book publishers should have thought of all this long ago, and had their strategy in place. Were they all sleeping during the 90's?

Personally though, I can't believe Amazon would pick this time, while the iPad is so top-of-mind for everyone, to play hardball and risk looking like an enemy to the book publishers.
 
I think a publisher should be allowed to set their own price for better or for worse. I do think Amazon has a right to disagree with their stance on kindle pricing and are well within their power to stop selling their books in digital form but to do the same in print is really fucking low. It'd be one thing if Amazon were some great company(don't get me wrong I love their service and selection) that treated their employees well and was some kind of "white knight" of the electronic world but I'm starting to think that perhaps they've gotten too big. I don't know what an author takes home under Amazon's proposed price versus Amazon, versus the Publisher, but the last thing I want to do is see Amazon drive down the price of ebooks to the level Amazon thinks an employee should be compensated.

Neither Apple NOR Amazon have DRM right, so I could not care less about either of them, they both fucking suck, fuck both of their shitty implementations and may all the industries involved go back to the drawing board with this shit.
 
Here's the details as I know it.

1) Macmillan wants to dictate what price eBooks sell for and to take the control away from Amazon for the ability to set the price.
2) Amazon already loses money on each eBook to try to keep the prices down. An average of $12 to $13 is what Amazon pays the publisher for a $9.99 book.
3) Amazon subsidizes the loss of the book from the profits of the Kindle
4) Macmillan would get the same amount of money if they stick with how they were sold before or if Amazon agreed to the new terms.

Maybe an easier example that some people here can relate to is what if game publishers said Amazon had to sell games at $59.99 even though Amazon got them at wholesale for $50. This would mean Amazon couldn't sell them for $50 if they wanted to because the publisher is dictating the listed price. Amazon's stance seems to be we paid for it already, we want control over what price we set.
 
mAcOdIn said:
Neither Apple NOR Amazon have DRM right, so I could not care less about either of them, they both fucking suck, fuck both of their shitty implementations and may all the industries involved go back to the drawing board with this shit.

I haven't heard anything about Apple's DRM implementation for e-books...what is it?
 
mAcOdIn said:
I think a publisher should be allowed to set their own price for better or for worse. I do think Amazon has a right to disagree with their stance on kindle pricing and are well within their power to stop selling their books in digital form but to do the same in print is really fucking low. It'd be one thing if Amazon were some great company(don't get me wrong I love their service and selection) that treated their employees well and was some kind of "white knight" of the electronic world but I'm starting to think that perhaps they've gotten too big. I don't know what an author takes home under Amazon's proposed price versus Amazon, versus the Publisher, but the last thing I want to do is see Amazon drive down the price of ebooks to the level Amazon thinks an employee should be compensated.

Neither Apple NOR Amazon have DRM right, so I could not care less about either of them, they both fucking suck, fuck both of their shitty implementations and may all the industries involved go back to the drawing board with this shit.

The kindles is a proprietary format isn't it? AMazons entire business model is based upon its pricing structure. To have a publisher mess with it is to upend your own model for the entire platform.

That said, the ebooks are NOT a wholesale product manufactured by the publisher, that sits on the shelf and sold to amazon to be resold. It's content. I'd say a wholesaler has a right to the price if it's simply product to retailer to customer, but with content it's a little different. The reasons why a consumer will buy content is based upon the system they are buying it from, and the platform they are buying it for.
 
Pristine_Condition said:
I haven't heard anything about Apple's DRM implementation for e-books...what is it?
I was making a broad statement about their music DRM and Amazon's ebook DRM since people brought Apple and their music implementation into the thread. Rest assured though that Apple will also get any ebook DRM wrong as well so my comment may as well stand on it's own.
mrkgoo said:
The kindles is a proprietary format isn't it? AMazons entire business model is based upon its pricing structure. To have a publisher mess with it is to upend your own model for the entire platform.

That said, the ebooks are NOT a wholesale product manufactured by the publisher, that sits on the shelf and sold to amazon to be resold. It's content. I'd say a wholesaler has a right to the price if it's simply product to retailer to customer, but with content it's a little different. The reasons why a consumer will buy content is based upon the system they are buying it from, and the platform they are buying it for.
Well I agree, but I'd also say that Amazon does not have a right to have any publishers books on it's service any more than any publisher has a right to have their books sold through Amazons service. So all I'm saying is that if the publisher doesn't agree they should just be men about it and keep their ebook and physical book shit separate, ban them from the Kindle all you want, doesn't matter to me but Amazon is like the de facto online retailer and banning their shit in physical form as well just sucks for all the parties, me, Amazon and the publisher. Keep the shit separate, they can go for their monopolistic DRM consumer cage model all they want in the virtual world but they need to just be a mindless store that doesn't take sides in the physical world.
 
mAcOdIn said:
I was making a broad statement about their music DRM and Amazon's ebook DRM since people brought Apple and their music implementation into the thread. Rest assured though that Apple will also get any ebook DRM wrong as well so my comment may as well stand on it's own.
But Apple got rid of the DRM on iTunes. As for their upcoming bookstore, it will use the epub format, which is an open standard.
 
mAcOdIn said:
I was making a broad statement about their music DRM and Amazon's ebook DRM since people brought Apple and their music implementation into the thread. Rest assured though that Apple will also get any ebook DRM wrong as well so my comment may as well stand on it's own.

Um, you know Apple has had DRM-free music for a while now, don't you?

{EDIT} Beaten...
 
Pristine_Condition said:
I haven't heard anything about Apple's DRM implementation for e-books...what is it?

Probably a variation of fairly or something. Just guessing, obviously, but it's sure to have it, right? No way they'll let it be redistributed easily.

DRM was terrible in music (and still is in movies) not because you could redistribute it, but because it limited the platforms you could use it on.

Ebooks are still in their infancy. Apple uses epub, and I'd argue that they should allow it to be DRM free to allow you to use it on other platforms, but like music, it's perhaps a good idea to limit it until it gets off the ground.

What would iTunes have been like if DRM was not in there from the beginning? It's possible files would've been broadly distributed and the music company pull out, or Apple drops it before it even began. I dunno. DRM is bad, but maybe it's a necessary evil in the early stages of launching a platform.
 
Pristine_Condition said:
Um, you know Apple has had DRM-free music for a while now, don't you?

{EDIT} Beaten...
That's great, when their entire catalog is converted to itunes plus or whatever they call it we can all have a beer celebrating how great their store is, until then they they can suck it, well really until they have loss-less DRM free music they can suck it but that's a different argument.
mrkgoo said:
What would iTunes have been like if DRM was not in there from the beginning? It's possible files would've been broadly distributed and the music company pull out, or Apple drops it before it even began. I dunno. DRM is bad, but maybe it's a necessary evil in the early stages of launching a platform.
That's probably unfortunately true, it shouldn't be, because with or without iTunes the media was freely available on the internet so it really shouldn't make a difference but I can see how publishers wouldn't see it that way.
 
mAcOdIn said:
That's great, when their entire catalog is converted to itunes plus or whatever they call it we can all have a beer celebrating how great their store is, until then they they can suck it, well really until they have loss-less DRM free music they can suck it but that's a different argument.

Their entire music library is drm-free 256kbps.

Beertime!
 
mAcOdIn said:
That's great, when their entire catalog is converted to itunes plus or whatever they call it we can all have a beer celebrating how great their store is, until then they they can suck it, well really until they have loss-less DRM free music they can suck it but that's a different argument.

That's probably unfortunately true, it shouldn't be, because with or without iTunes the media was freely available on the internet so it really shouldn't make a difference but I can see how publishers wouldn't see it that way.
You seem pretty out of date, dude.

This transition happened quite awhile ago.
 
mrkgoo said:
Their entire music library is drm-free 256kbps.

Beertime!
They finished getting it all to itunes plus?
Close to a beer, maybe half a beer lol, 256kpbs isn't quite an acceptable replacement for loss-less for me, but it's pretty damn close. I'd say that's actually a pretty good spot for music, the amount of music that a person could discernibly tell the difference between a 256kbps VBR and the CD would be pretty small and affect a small amount of genres and artists.

Err, their FAQ says they haven't got the whole catalog DRM free yet either.
 
I hate to say it, but I think I'm with Amazon on this one. Retailers should always be able to set the sale price of any items, just as distributors set the price they sell to retailers.

Edit: Although my anger at book publishers in Australia still preventing parallel importation may have coloured my views here.
 
idahoblue said:
I hate to say it, but I think I'm with Amazon on this one. Retailers should always be able to set the sale price of any items, just as distributors set the price they sell to retailers.

Edit: Although my anger at book publishers in Australia still preventing parallel importation may have coloured my views here.

Retailers don't get to set the price of the books they sell. It's a revenue sharing agreement, and it drastically changes the situation. At historically 35% revenue for the publisher (3.50 a book), they must be chafing. Apple's 70% is much more reasonable as these books have basically zero cost to sell for the retailer. Bandwidth/unit is nothing, no shipping, no warehousing, limited staff needed, etc.

Does anyone know what Sony's revenue split is? I have a Reader, I'm curious and haven't been able to find out.
 
grumble said:
Retailers don't get to set the price of the books they sell. It's a revenue sharing agreement, and it drastically changes the situation. At historically 35% revenue for the publisher (3.50 a book), they must be chafing. Apple's 70% is much more reasonable as these books have basically zero cost to sell for the retailer. Bandwidth/unit is nothing, no shipping, no warehousing, limited staff needed, etc.

Does anyone know what Sony's revenue split is? I have a Reader, I'm curious and haven't been able to find out.
Well there you go, learn something new everyday. I think that system may be in trouble with digital products, they should maybe look at just selling x amount of licenses for y dollars and letting the retailer deal with the end pricing.
 
Pristine_Condition said:
A lot of book publishers are upset at Amazon over Kindle pricing. Amazon got into it with Macmillan books, and has not only decided to remove all their titles from Kindle...they removed all their physical books from Amazon.com as well.


http://thefastertimes.com/fiction/2010/01/30/amazon-pulls-all-macmillan-books-in-kindle-dispute/

This makes no sense. Why in the hell would Amazon escalate this when other e-book readers are knocking at the gates?

Amazon don't take sh**. :lol
 
grumble said:
Retailers don't get to set the price of the books they sell. It's a revenue sharing agreement, and it drastically changes the situation. At historically 35% revenue for the publisher (3.50 a book), they must be chafing. Apple's 70% is much more reasonable as these books have basically zero cost to sell for the retailer. Bandwidth/unit is nothing, no shipping, no warehousing, limited staff needed, etc.

Does anyone know what Sony's revenue split is? I have a Reader, I'm curious and haven't been able to find out.

As I pointed out earlier, Amazon takes a loss on each book. They pay the publisher $12 to $13 for every $9.99 book that they sell.
 
Marty Chinn said:
As I pointed out earlier, Amazon takes a loss on each book. They pay the publisher $12 to $13 for every $9.99 book that they sell.

you guys are talking past each other about two different things. You are talking about what they do with Kindle, he's talking about the way physical books are sold.
 
Pristine_Condition said:
you guys are talking past each other about two different things. You are talking about what they do with Kindle, he's talking about the way physical books are sold.

He was talking about Apple, Sony, bandwidth, and so forth so I assumed he was talking about eBooks. Plus the fact that Amazon used to give a 35% cut and now offered a 70% cut just a few days ago, I also assume he was still talking about eBooks.
 
mAcOdIn said:
They finished getting it all to itunes plus?
Close to a beer, maybe half a beer lol, 256kpbs isn't quite an acceptable replacement for loss-less for me, but it's pretty damn close. I'd say that's actually a pretty good spot for music, the amount of music that a person could discernibly tell the difference between a 256kbps VBR and the CD would be pretty small and affect a small amount of genres and artists.

Err, their FAQ says they haven't got the whole catalog DRM free yet either.


Hmm: right you are:

itunes faq said:
Why is iTunes Plus format available for certain music, but not all?
The reason that certain music and music videos are not offered in our DRM-free, highest quality audio format is because they have not been provided in iTunes Plus format from the music label.

I wonder if that's not just there for a disclaimer or an old hanger on, as there were several reports that DRM-free is gone from iTunes music (obviously still there for videos)

Phil at Macworld 2009 said:
"Over the last six years songs have been $0.99 [79p]. Music companies want more flexibility. Starting today, 8 million songs will be DRM free and by the end of this quarter, all 10 million songs will be DRM free,

wikipedia said:
On January 6, 2009, Apple announced that DRM had been removed from 80% of the entire music catalog in the US.[4] Full iTunes Plus availability was achieved on April 7, 2009 in the US, coinciding with the introduction of a three-tiered pricing model.[5]

edit: Ah, maybe this explains it:

As of the announcement, 8 million songs were available in Apple's DRM-free format. As of April 2009, all songs are now available in the iTunes Plus format, with the exception of the Japanese iTunes store.

Do you have a Japanese account?
 
RubxQub said:
You seem pretty out of date, dude.

This transition happened quite awhile ago.
Well I am out of date because I refuse to buy anything lossy, although 256kpbs AAC is pretty damn close. I was there for their transition(well separate option really) to 192kpbs mp3 DRM free but was unaware they now offered most of the catalog in 256kbps AAC DRM free and dropped the DRM version completely where the new version was released.

I still think Apple has it "wrong" regarding music but it's not just the store that I think has it wrong but iTunes and how it sees music. That said, it's not just iTunes that has music archival, playback and transferring wrong, all of them do it wrong, iTunes is the best out of them. I use iTunes for my music yet haven't been to their store in over a year lol, well actually I checked, 2005 was my last iTunes purchase hehe.

I dunno though, I'll concede that the way I want music probably isn't profitable or what the rest of the people want. I'd prefer all of their music to be loss-less, don't care if it's Apple Lossless, FLAC, whatever, although I'd prefer they help flesh out FLAC since it could work on everything barring some actual damn developer support, then what I'd like from iTunes is the ability to set a target size for your mobile device(iPod, iPhone, iPad) and during the sync it convert those lossless files on the fly to whatever you set it at for your mobile player. Lets be honest neither the iPods musical prowess or most headphones warrant lossless audio and their limited space in relation to a computer also makes an argument against it. I think Samsung's(or was it RIM's Roxio service for my Blackberry) software actually can automatically convert everything on the fly, leaving the original on the computer but the smaller lossy one on the mobile device. That's what I want, yeah, the initial sync will suck ass but it doesn't take long for a modern computer to transcode from one format to another once it's in some kind of digital form already and you're not doing hundreds of them, so subsequent syncs should be a lot more painless. It seems that at one point Apple was/is toying with the concept of having two versions play together as there's the option to hide duplicates, but I think that's so wasteful on space that I'd rather lose CPU time than permanent HD space like that. But, like I said, my way probably isn't financially profitable, I know the iTunes store isn't exactly a money maker for Apple, I think they still lose money on it currently and the last thing they need to do is change what's a 3 to 6 MB(mb, Mb, mB, fuck I forget) download to 22 MB, nor would every consumer out there be thrilled at the prospect of having to wait for a 220 MB album to download.

But my scorn is really towards the whole concept of volume itself because I think it changed consumers perception of quality. At the time of iTunes launch a 128 kbps song was still a 15 minute download for many Americans, I understand why Apple went with it, it sounds reasonably well at a bitrate people downloading music were already accustom to even if they were not used to the AAC format, and it was a reasonable size, so Apple from the start decided that quantity was going to trump the quality of their product from day one when I think it should be done backwards. I think setting such a hard price point as Apple has done, while convenient for the conumer from that single standpoint also severely hampers their ability to update formats that use more storage and bandwidth because they have to wait until it's cheap enough to not lose them more money, it seems they didn't like the tiered approach much or perhaps they trained their customers too well on the 99 cents price point and they didn't bite, had their consumer not been trained the iTunes store could theoretically offer a 99 cents 256kbps lossy and say a 1.98 or whatever lossless version for both class of consumers but since their business is the iPod itself and not the content on the iTunes store they don't really want to give up that bullet point of 99 cents. Note, I'm kinda purposely ignoring the itunes plus tiered pricing because it seems it never took off, even if there may still be some things that have it up.

Again though, that's why I won't run a business because my format would never catch on and I'm too idealistic that the only way my business would work is if everyone were idealistic, or maybe everyone is idealistic they just don't share my ideals, whatever the reason I recognize the disconnect from reality but still refuse to support the practice of lossy audio when I can go and get a CD and rip it myself.

At least regarding books there's not much "loss" in an ebook, it's not like one format cuts out every 50th word or some shit, the only thing that may or may not be handled well is art or pictures which really only applies to a few things. For books with no or standard black and white illustrations whatever format they're released on now will most likely be just as relevant 10 years from now.

mrkgoo said:
Do you have a Japanese account?
Lord no, lol, wouldn't even know how to search for an artist in Japanese lol, isn't their version of alphabetical order like by stroke count or some shit? I'd lose my fucking mind. Most likely just an outdated section as you noted then, makes me closer to buying beers again, damnit, the pendulum's swinging the wrong way!
 
Great points. I don't care much for lossless, but I'm not in the same group as you. I think it's probably, as you say, just a bandwidth and convenience issue. I don't think it's an issue of idealism. Very few people would bother with the lossless download if it cost too much more. That said, 22MB isn't really that big a file anymore, so who knows.

I didn't know iTunes ever had 192kbps MP3s.

They have a tiered pricing structure now. $1.29, 99c, and 79c (I hardly EVER see 79c songs). It was part of the deal with the music companies to go DRM free - Apple finally backed down on that one. The tiered pricing isn't for quality, just popular vs. normal songs.

Also, just to note, movies have gone down that path. When you buy an HD movie, you get an SD version to put on your mobile device. I would like, as you say, system that ranscodes it during the time of import too, or at least the option to operate this way (actually, the iPod shuffle had that option - to convert songs that synced to it as 128kbps aac, I assume because the storage space was so small for that).

Also most movies in iTunes aren't currently in full 1080p HD, atlas for sale. I assume that 20GB files aren't ideal for the same reason.

Regardless, go get that beer! *cheers*
 
It's Amazon's store and I think that they should have every right to control the prices there, especially if it means it is cheaper for us consumers. Personally I think $9.99 is too much, but $15 is an absolute joke for an ebook. The massive savings that are made through not having to print, publish, distribute and warehouse books should be passed on to the consumer, not some way for publishers to line their pockets even more.
 
With such low prices, it has the potential of eventually killing prices of physical books as well, which isn't really possible because they're already extremely cheap. That's why there's an argument.
 
smh, this is going to be norm from now on, either the book publishers will take their online counterparts like amazon hostage or other way around now that the market is hotting up.
 
Not sure how I feel on the rights and wrongs of this. Maybe Amazon and the publisher should agree prices on books at semi-regular intervals, whereby every time said book is sold, the publisher receives that amount. But allow Amazon to deviate from that price if they're willing to incur the loss. This would more mirror the current model, where Amazon buys stock at a wholesale price and then sells it on at whatever price they wish (or so I believe).

But if you think publishers would have smoother sailing with other platform holders - remember when Steve Jobs banned all John Wiley & Sons books from Apple Stores, because they published an unauthorised biography of him? With Apple you may have the additional problem of Steve Job's ego to contend with :lol
 
Wait, Amazon has a reverse razorblade model for the Kindle? They profit on the hardware, lose on the eBooks, and pray you don't buy enough books to break even?

o.O
 
SnakeXs said:
Wait, Amazon has a reverse razorblade model for the Kindle? They profit on the hardware, lose on the eBooks, and pray you don't buy enough books to break even?

o.O

I'm sure the idea was to profit eventually when they have the negotiating power to sell most books at 9.99 with some exceptions.

This spat, from information posted, is not about the pricing of some books, or that McMillan is not getting reimbursed the 12 or 14 dollars Amazon is reportedly paying publishers for their 9.99 books, but rather the upfront costs consumers have to pay.

Amazon wants a standard 9.99 price. The publisher, with Apple's support, wants variable pricing. Because clearly, they don't want a conditioned 'market' of consumers who expect 9.99 pricing on books. They want to break expectations before kindle takes hold. Because they saw how Apple won the PR battle on the 0.99 itunes downloads. Even though a deal was struck to allow more leeway in pricing, more tracks of most albums, regardless of demand, remains 0.99 with a 9.99 per album download. And the record companies can do nothing about it. People expect to pay those prices for most songs they download. And they can't charge 1.00 or 1.01 for a slightly popular song vs. a slightly less popular one.

And I refer back to my experiences buying their overpriced printed texts when the publishers have captive audiences (students) and I simply don't trust that the publishers will set the right prices.
 
I'm all for retailers setting prices. Because that's how things should work. Hopefully as eBooks get bigger we'll start to see price competition like how we've seen music download prices drop on most retailers (Amazon, actually are great for that).
 
Wow this sucks. Good thing I already got both Dragon Age books. I guess I'll have to pay full price at Borders if they release another one.
 
mrkgoo said:
Great points. I don't care much for lossless, but I'm not in the same group as you. I think it's probably, as you say, just a bandwidth and convenience issue. I don't think it's an issue of idealism. Very few people would bother with the lossless download if it cost too much more. That said, 22MB isn't really that big a file anymore, so who knows.

I didn't know iTunes ever had 192kbps MP3s.

They have a tiered pricing structure now. $1.29, 99c, and 79c (I hardly EVER see 79c songs). It was part of the deal with the music companies to go DRM free - Apple finally backed down on that one. The tiered pricing isn't for quality, just popular vs. normal songs.

Also, just to note, movies have gone down that path. When you buy an HD movie, you get an SD version to put on your mobile device. I would like, as you say, system that ranscodes it during the time of import too, or at least the option to operate this way (actually, the iPod shuffle had that option - to convert songs that synced to it as 128kbps aac, I assume because the storage space was so small for that).

Also most movies in iTunes aren't currently in full 1080p HD, atlas for sale. I assume that 20GB files aren't ideal for the same reason.

Regardless, go get that beer! *cheers*
Yeah, 192 kbps mp3 versus 128 kbps aac was kinda a joke, not even worth talking about really, Apple's AAC is a good codec, I'd say the standard 128 kbps AAC was easily on par with the 192 kbps MP3 and the only thing your extra 30 cents was buying was the lack of DRM, but good to see that's in the past.

I know I sound like a music snob, I don't view myself as one but I guess it does sound that way. For most modern music I actually find the 128, and definitely feel the 256, kpbs AAC formats are pretty damn accurate. I mean, 128 kpbs really isn't close in a way, but it's only apparent on certain songs and even then, unless you have the original to compare it to at the same time it's not even noticeable. Especially if your primary method of listening to music is on an ipod or similar mp3 device. But music playback becomes a really sticky subject because not only a some songs perfectly fine in 128 kpbs but it's also heavily dependent on the source as well. The SACD format was superior to standard CD audio yet some SACD's were inferior because the masters had degraded or been lost and the new source they used wasn't on par with the CD(why not just use the fucking CD as the source at that point?(actually why release a SACD at all if it physically can not be better than the CD and all SACD players could read CD's?)) or because the person doing the remastering got a wild hair up his ass and decided to fuck shit up. You even see this on new CD re-releases now where they're basically just upping the volume of everything killing the more subtle sounds so the CD just sounds louder and "better".

I think the whole industry is moving away from really detailed sound, much to my chagrin at times, but I think that it's unfortunately what people like. I also think how people listen to music has changed. I'd be a liar if I said I don't do my listening on my computer, but my computer happens to be hooked up to my stereo with an optical cable(why can I not rip a SACD into 5.1 FLAC God?? Sony, release a PC SACD drive) and I have to admit that if my choices were lossy audio all stored on the PC or lossless CD's where I had to thrumb through my booklets to find the ones I want to listen to I would choose the computer, I think most would and have. But I can afford to be picky, the iTunes price of a CD wasn't too much cheaper(sometimes not at all) than the actual CD and I can just rip it into whatever I wanted, so I sat the online music store scene out. I tried them all and outside of Emusic or whatever, iTunes was the best, technically it was always the best since Emusic's selection paled in comparisons to iTunes even though it was DRM free, and Apple's DRM was fairly lax for the time period. But I wonder if this isn't a cyclical, it's true most people probably are not listening to their music on a good home stereo anymore but media streamers are becoming more and more common and decent home theater setups are becoming common thanks to people wanting surround sound for their movies, I wonder if we wont again be at a point where we all sit and complain about how we allowed our music to be such low quality when we play it on our 600 dollar home theater in a box setups and wonder why it doesn't sound like we expect. That's why I'm against allowing an online store become a replacement for my CD shopping, if it was lossless, if I knew for a fact that 10 years from now, or 5 years from now that what sounded the best on my ipod also sounded the best on my home stereo I would be all over the online music scene but it's not like that. With iTunes you're trapped, yeah it sounds good on your ipod, it osunds fine on your computer speakers when you're hosting a party or cleaning the house but it's not really that good on your stereo and if you want it to sound good on your stereo then you gotta go and buy the fucking CD again and you've saved no money in the end. So even back then I wanted quality to be first, if the song called for a 16 mb 320 kbps variable AAC then I'd have liked it to be sold at that bitrate, damn the convenience, because if we go for convenience at the start like we did with music we lose convenience and flexibility in the future.

But anyways, back to codecs, I think the concept of even labeling them 128 or 256 kbps is funny. Some songs are just fine in 128 kbps putting them in a 256 kbps is just a waste of space, let alone some giant lossless format. Thankfully, the concept of compression itself ensures that no two songs the same length are actually the same size in the first place and most modern, pretty sure all of Apples AAC's modes at least, are now variable bit rates instead of a constant bitrate. I'd have just preferred that from the onset that each song got whatever was necessary to sound good but their codec and their store has been a work in progress, even the plain old 128 kbps standard has grown in quality and the same happened to mp3 and it's encoders over the years. Like I said though, 256 kbps is really fucking close, real close. I probably own a handful of albums where I could tell the difference between lossless and 256 kbps on my home stereo and I know I can't tell the difference on my Ipod with it's headphones. I can actually *live* with 256 kbps AAC.

I'm sure Apple's facing the same issue with movies. I never checked out their movie store so I'm disappointed they don't have 1080p but I bet it'll get really funny if they add old shows(or have they). Even what we consider Standard Def, which I guess is probably 480p is probably too good for an old show like MacGyver or I Dream Of Jeannie but would a consumer bite for something that wasn't even 480p? I admit that a standard has to exist, I just think it should have always been invisible to the consumer, they should just get the best version of what they buy that technology allows for.

Regarding people paying more for a lossless version, I don't think they would now, because 99-1.29 cents has been established by Apple as the price for a single song, it'll be hard to undo that, but what if they had established the price of a lossless at the start at 1.49, would it then be too much(would that lose too much money due to bandwidth)? Is 99 cents what enabled Apple's store to do so well or did the store doing well cement the 99 cents price point? But that musing aside, if the technical realities placed a lossless album download as costing more than the album in the store, then it wouldn't work, the digital version has to either be equal or less than the physical object, whether we're talking books, music, movies whatever, that's how we're trained. If our current infrastructure makes that impossible we need to upgrade that infrastructure.

But I really worry about the book DRM more than I do music because despite being a similar situation I have the option of ripping a CD myself into any format I choose, I can rip it to ogg, flac, aac, mp3, wma, fuck I could put Microsoft's DRM on the WMA and tie my own hands behind my back if I wanted to, but books, I can't really rip a book, so this is actually more important to me than the music scene. I guess I could scan each page one by one, or destroy the spine and run it through a scanner and make a PDF, or maybe run some OCR on it and convert it to a txt file but those are shitty options. I like physical books, I'll probably prefer to buy physical books as my primary choice of the format because I enjoy reading the physical book. For music the format of the music isn't as important as what it's played on, that's what determines my enjoyment, where as a books format is the most important. Put the book on some tiny paperback with too small text that runs too close to the center of the spine and it becomes a chore to read(I'm looking at you Sherlock Holmes the Complete Works!) but get one of those paperbacks or hardbacks with a generously sized font, nice paper, nice spacing and it becomes so relaxing. Ereaders aren't there for me yet, although I have no doubt that they will in fact clearly surpass physical books at one point in readability, what with the option for their own lighting, text size and font options and the like, at that point the only thing a physical book will have going for it is nostalgia and maybe that they work without electricity provided you have a lit area. It's because I know book's days are numbered(not literally but practically) that I want it done right. I want the DRM and the storefront divorced from each other and no longer tied to the device and I want the devices to compete on features alone, not who's got the biggest store. I want to buy a Kindle one day and if Sony comes up with a better ereader 3 years from then I want all my Kindle purchases to work on that and if Apple's the best 4 years after that then I want both Sony's and Amazon's shit to work on it. If that's the route Apple goes with ePub(I'm ignorant on how it'll work for non public domain works) then Apple will get my support on that. I'd like all the estores to essentially be the same as normal stores, in other words they all buy the same file from the publisher but can sell it for what they want. If they want to discount some old vampire ebooks to coincide with the newest Twilight(ugh) release then cool, whatever, so long as they play on everything, what I absolutely do not want is another ipod situation where you're stuck with only one real estore and one real device that can play the shit.

But I understand their fear, books are smaller in size than music and storage wise it's possible for people to honestly fit the entire collection of books they ever wanted on a portable device, that's still hard for some people with music and still impossible for most with movies. Plus, I don't think that books ever had to deal with piracy quite like music and video did, the demographic is kind of different but the act of getting a physical book onto an easily piratable format was too time consuming for most, unless it was leaked from someone most didn't bother. I mean, who's going to transcribe a book just to upload it online? But if new release books become just as easy to get as music and video then they're really looking at something they never had to deal with before. I also think that since the size difference for storage and transfer is different than music and video that digital books will overtake physical books way faster than music and video once it's "ipod" hits the market. Kindle and nook aren't it yet, but when it hits, or if it ends up being the ipad or a cellphone app(doubt it on the cellphone) then it's fucking on.

So I think print will be in the strange situation of having to switch their prices faster. Clearly what they'd like to do is keep the current pricing model and just transition to digital, make the same they always made in print and make more in the digital world and not worry about which medium is making more or less money, but I don't think consumers will go for that in the end. In the interim I'd like the price of physical books to go up but come with the ebook via some code or some shit, although how to keep some ass from going and activating the code while the book's sitting on the shelf is beyond me, and the ebook. Either way, in the end the digital versions just kinda have to be cheaper, both while they co exist because of it being cheaper than printing and distributing a book and consumers know this and also feel that getting something intangible is worth less than a physical product and also later when the ebooks have overtaken the print because the print books will be rare and not as in much circulation and will be more expensive by default.

But I see how they're all scared shitless that the market for mass electronic distribution that'd warrant true volume prices isn't there but they're being forced to act as if it were to facilitate that market actually happening because it's hard to balance the physical and digital sales. Once it's balanced out and print is all but dead it'll be easier to come up with such a scheme but in the interim it's gotta be scary as shit for them because they don't know what will happen, how many of a book do they print, if they allow the consumer to be trained to buy at 10 bucks on line when physical print is still the main market what happens? Does that shit just sit on the shelf losing money while the guy/girl waits to get an ereader, does the consumer just think it's a rip off and not buy it, do they have to lower the price of physical in line with online just to keep selling even at a loss? It's a shitty situation to be in.
 
Amazon is the good guy in this. They are selling e-books for $10 AT A LOSS, the publisher still gets the cut as if the price were higher. Of course down the road Amazon would probably renegotiate the price based on their dominance of the e-reader market, but so far THAT HAS NOT HAPPENED.

Apple caved and went with a $15 price. Which would YOU rather pay, $10 or $15? Consider that you need to buy an e-reader device first.

So now Amazon is reminding publishers that they sell a lot more "real" books (DTBs, or "dead tree books") than e-books ATM, and they are a heavyweight in that arena.

Also recall that WAL-MART is selling DTBs for $10, a far more serious move to "restructure" real book pricing than anything in the e-book area. And given that Borders is going belly-up, seems to me that the future of retail DTB market is pretty clearly written.
 
So did they remove the content from Kindle's again or you just can't buy them? I hope it doesn't go up to the more expensive apple pricing since they've been having book wars where you can get books for cheaper than $14.99 for the physical hardback. This is also why I assume when they finally get textbooks on there it will be overpriced junk for years to come. :(
 
jason10mm said:
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Also recall that WAL-MART is selling DTBs for $10, a far more serious move to "restructure" real book pricing than anything in the e-book area. And given that Borders is going belly-up, seems to me that the future of retail DTB market is pretty clearly written.

And Wal-Mart pissed off a lot of publishers and authors by doing that. Same with their new release DVDs being $9.99 during the holidays. The content creators are worried about devaluing their property. You sell enough at that price, people expect everything to be at that price forever. It eats into the revenue and net profits generated on the product and does devalue the brand. If eBook prices are that low for everything then it will start greatly affecting the sales of physical books too. Just look at how pricing on iTunes has affected sales on physical albums. (Exclude piracy from this argument, since that is a whole other can of worms). People were locked into expecting a certain price and dont want to budge even $1 past it.

I think this is the first step in an ugly fight.
 
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