Comments on: BREAKING: Macmillan Settles with DOJ on Price Fixing http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/ News & views on e-books, libraries, publishing and related topics Thu, 23 May 2013 03:19:11 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: Felix Torres http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238777 Felix Torres Sat, 09 Feb 2013 19:28:55 +0000 http://www.teleread.com/?p=78399#comment-1238777 If you can't collude, merge. Same result, but its legal. Get the BPH segment to two players and then do as the airlines do; float a price hike and if the other player(s) follow suit, you're golden. If not, you drop it. Wink-wink, nod-nod is just as effective as secret meetings and leaves no email trail. So far the BPH execs have been crude and crass in their money grubbing which is why they've been getting egg on their face. In time, they'll get subtler or by replaced by somebody from Corporate HQ who is. As is, let's not forget that the settlement and "restitution" they have grudgingly accepted amounts to pennies on the dollar of what the price hike brought in. They are still making out like the bandits they are. If you can’t collude, merge.
Same result, but its legal.
Get the BPH segment to two players and then do as the airlines do; float a price hike and if the other player(s) follow suit, you’re golden. If not, you drop it.
Wink-wink, nod-nod is just as effective as secret meetings and leaves no email trail.
So far the BPH execs have been crude and crass in their money grubbing which is why they’ve been getting egg on their face. In time, they’ll get subtler or by replaced by somebody from Corporate HQ who is.
As is, let’s not forget that the settlement and “restitution” they have grudgingly accepted amounts to pennies on the dollar of what the price hike brought in. They are still making out like the bandits they are.

]]> By: Chris Meadows http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238767 Chris Meadows Sat, 09 Feb 2013 18:27:05 +0000 http://www.teleread.com/?p=78399#comment-1238767 Yeah, maybe they're not done scheming. But if they do re-implement agency pricing, they'll have to do it on their ownsome, without consultation with the other publishers. It was that consultation that was the nastiest part, because without being able to be <i>sure</i> the other publishers would follow suit, none of them would have done it. I mean, just look at Sargent's statement—he outright said that since every other big-six publisher was settling, remaining Agency themselves would have been a competitive <i>disadvantage</i> for Macmillan. If they're not able to coordinate with each other, I think the publishers may just think twice about putting themselves back into agency that way. Prisoners' dilemma, ho! Yeah, maybe they’re not done scheming. But if they do re-implement agency pricing, they’ll have to do it on their ownsome, without consultation with the other publishers. It was that consultation that was the nastiest part, because without being able to be sure the other publishers would follow suit, none of them would have done it. I mean, just look at Sargent’s statement—he outright said that since every other big-six publisher was settling, remaining Agency themselves would have been a competitive disadvantage for Macmillan.

If they’re not able to coordinate with each other, I think the publishers may just think twice about putting themselves back into agency that way. Prisoners’ dilemma, ho!

]]> By: Juli Monroe http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238721 Juli Monroe Sat, 09 Feb 2013 15:40:30 +0000 http://www.teleread.com/?p=78399#comment-1238721 All right! Popcorn? Check! Comfy chair? Check! I'm ready. Bring it on. All right! Popcorn? Check! Comfy chair? Check! I’m ready. Bring it on.

]]> By: Chris Meadows http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238720 Chris Meadows Sat, 09 Feb 2013 15:38:27 +0000 http://www.teleread.com/?p=78399#comment-1238720 I might just write a little post 'bout someone else misbehaving later today. :) I might just write a little post ’bout someone else misbehaving later today. :)

]]> By: Juli Monroe http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238719 Juli Monroe Sat, 09 Feb 2013 15:29:29 +0000 http://www.teleread.com/?p=78399#comment-1238719 But Chris, if we'd had the courtroom drama, we could have all broken out the popcorn and followed along with your ironic coverage of the event. Righthaven has been out of the news for more than a year now. Someone else needs to misbehave. ;) But Chris, if we’d had the courtroom drama, we could have all broken out the popcorn and followed along with your ironic coverage of the event. Righthaven has been out of the news for more than a year now. Someone else needs to misbehave. ;)

]]> By: Felix Torres http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238670 Felix Torres Sat, 09 Feb 2013 11:34:47 +0000 http://www.teleread.com/?p=78399#comment-1238670 Agency may be gone (for three years) but it leaves behind the legacy of the 70-30 benchmark split. And it will be followed by other schemes like Macmillan's recent "raise prices another 10% and let retailers only discount 10%. Nothing in the settlement prohibits pricing ebooks at $30 and wholesaling them at $15. "Them's folks ain't done scheming." ;) Agency may be gone (for three years) but it leaves behind the legacy of the 70-30 benchmark split. And it will be followed by other schemes like Macmillan’s recent “raise prices another 10% and let retailers only discount 10%. Nothing in the settlement prohibits pricing ebooks at $30 and wholesaling them at $15.

“Them’s folks ain’t done scheming.” ;)

]]> By: Chris Meadows http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238623 Chris Meadows Sat, 09 Feb 2013 06:28:22 +0000 http://www.teleread.com/?p=78399#comment-1238623 Sargent's <a href="http://www.tor.com/blogs/2013/02/a-message-from-john-sargent" rel="nofollow">complete statement on the matter</a> can be found on Tor.com. I think the most important thing to take out of this is that, even if it didn't go to trial, in the end <i>the system worked</i> as it was supposed to. Only a couple of years after it was implemented, agency pricing from the Big Six publishers is effectively dead. Yay, we win! That we don't get the <i>schadenfreude</i> of courtroom drama might be a little sad…but you know what? Given the choice, I'd rather have the cheap e-books. :) Sargent’s complete statement on the matter can be found on Tor.com.

I think the most important thing to take out of this is that, even if it didn’t go to trial, in the end the system worked as it was supposed to. Only a couple of years after it was implemented, agency pricing from the Big Six publishers is effectively dead. Yay, we win!

That we don’t get the schadenfreude of courtroom drama might be a little sad…but you know what? Given the choice, I’d rather have the cheap e-books. :)

]]> By: Felix Torres http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238523 Felix Torres Fri, 08 Feb 2013 23:20:16 +0000 http://www.teleread.com/?p=78399#comment-1238523 Apple never backed away from a lawsuit? Only if *they* are suing. Try this one: http://www.justice.gov/opa/pr/2010/September/10-at-1076.html They settled even though it open the doors to one ugly class action lawsuit. Messing with the DOJ is no fun even when you're innocent; it's even worse when you're guillty and all your partners have cut their losses. They'll settle. Apple never backed away from a lawsuit?
Only if *they* are suing.
Try this one:
http://www.justice.gov/opa/pr/2010/September/10-at-1076.html

They settled even though it open the doors to one ugly class action lawsuit.
Messing with the DOJ is no fun even when you’re innocent; it’s even worse when you’re guillty and all your partners have cut their losses.

They’ll settle.

]]> By: Brian http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238444 Brian Fri, 08 Feb 2013 18:00:57 +0000 http://www.teleread.com/?p=78399#comment-1238444 Apple settled an eBook price-fixing suit with the EU late last year. I would expect that it'll depend on what kind of settlement they can get. Apple settled an eBook price-fixing suit with the EU late last year. I would expect that it’ll depend on what kind of settlement they can get.

]]> By: Juli Monroe http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238443 Juli Monroe Fri, 08 Feb 2013 17:58:55 +0000 http://www.teleread.com/?p=78399#comment-1238443 Marilynn, I'm not sure they will. There's no longer any profit to them in winning. They benefited from Agency Pricing keeping prices stable across all platforms. Now that everyone has settled, their reason for being in the game has gone away. I think they'll take their toys and move to a new sandbox. Marilynn, I’m not sure they will. There’s no longer any profit to them in winning. They benefited from Agency Pricing keeping prices stable across all platforms. Now that everyone has settled, their reason for being in the game has gone away. I think they’ll take their toys and move to a new sandbox.

]]> By: Marilynn Byerly http://www.teleread.com/ebooks/macmillan-settles-with-doj-over-price-fixing/comment-page-1/#comment-1238438 Marilynn Byerly Fri, 08 Feb 2013 17:40:52 +0000 http://www.teleread.com/?p=78399#comment-1238438 Apple has very deep pockets and has never backed away from a lawsuit. They will go after the DOJ in full attack mode. Apple has very deep pockets and has never backed away from a lawsuit. They will go after the DOJ in full attack mode.

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