If we look back to the beginning of the agency model in ebooks, which began a little more than one year ago, we can find the publishers’ claimed rationale for changing models (which occurred with a mighty push from Apple): to protect ebooks from becoming mere commodities and to prevent consumers from establishing a mindset that $9.99 is the right price point. Okay, that was the rationale, coupled with a fear of Amazon becoming too powerful, that was bandied about. The question is: Were publishers successful in preventing the commoditization of books? The reports...

Another class action lawsuit has been filed against Apple and the “big 6” publishers over agency pricing. Unlike the other lawsuit earlier this month, this one also includes Random House among the defendants. But like that other suit, it alleges that Apple and the publishers colluded on an e-book price-fixing scheme. The law firm filing the suit seeks to represent the class of people who purchased a defendant’s e-book for more than $9.99 since April 1, 2010. While I’m not quite as optimistic as Paul that the eventual outcome will do away with agency pricing, I have to...

Something about being off for March break brings out the nesting/cleaning instinct in me, and after almost a week off, my home is now sparkling---and my digital home is too! Among other spring cleaning chores was the purchase of a new backup drive, the deletion of a bunch of digital clutter so I wouldn't over-fill said drive, and a virtual pruning of the digital bookshelf. Lessons learned this time around? Keep reading! 1) LESSON LEARNED: NO SAMPLE, NO PURCHASE Before there was Smashwords, the big indie goldmine was the Fictionwise multiformat book, and I used to get suckered in to spending on...

That's the title of a good article in author Nathan Bransford's blog. It all comes down to the fact that the wholesale model is being used for paper books and the agency model is being used for ebooks.  Here's a snippet: So now there's a system in place where print books are still sold based on the wholesale model and e-books are sold on the agency model. This results in.... curiosities. Let's take one of the examples that had Reddit perplexed. THE GIRL WHO KICKED THE HORNET'S NEST is selling on Amazon for: E-book: $11.99 Hardcover: $11.89...

An article in today's issue of The Bookseller, discussed this survey by Mintel. Here's a snippet. A lot more info in the article: Half of all book buyers expect to pay less for e-books, according to new research by Mintel, but those book readers who already own e-book devices have marginally more realistic expectations over price, suggesting that the transition of the big publishers to agency terms is helping to shift consumers' attitudes—albeit slowly. The survey also found that nearly half of readers (49%) said they would rather own and read actual books rather than e-books, but the survey also...

Raise your hand if you’re surprised. Apple Insider reports that Random House e-book titles have started appearing on the iBooks store, just in time for the launch of the new iPad today. It must have been in the offing for some time before Random House actually announced the change to the agency model. I’ll be watching the liveblogging of the iPad 2 launch event just like anyone, but will probably have to wait for this evening to post my thoughts on it due to my day job. ...

It used to be the Agency 5, now it’s the Agency 6 as Random House has caved and instituted agency pricing. This further changes my book-buying habits. Let me start by saying that I am not outright opposed to the agency system. What I am opposed to — and appalled by — is the pricing. Granted that Agency 6 pricing clearly demonstrates lack of competition bordering on price collusion (Isn’t it amazing how similar the Agency 6 ebook pricing is across the board?), but that isn’t the primary problem I have: The primary problem is...

Another one from The Bookseller. Random House UK is not jumping on the agency bandwagon, or at least not yet. However, Random House UK said it had a wait and see policy on the pricing model. When the Office of Fair Trading launched its investigation into e-book pricing in February, publishers outside agency said they would be more cautious about it while it was under review. A spokesperson for Random House UK did not refer to the OFT investigation but said: "New commercial models in the fast changing e-book environment are constantly under review. Across our territories—not least in the UK—we...

I thought this was worth publishing in full, given the importance of the matter. It comes from an email I received this morning. Blockquotes omitted: From Steve Potash, OverDrive CEO: Since Friday, we’ve heard directly from many library partners about the new eBook licensing terms instituted by HarperCollins. As an initial step, here is what OverDrive is doing about it. Beginning March 7, we are making changes in the eBook ordering process. HarperCollins eBooks and their catalog of titles will be moved from our general eBook catalog to a separate collection. Until we have time to review the effect of these...

Here is the press release I received: “Random House, Inc. is adopting the agency model for e-book sales in the United States effective March 1, 2011. Going forward, Random House will set consumer prices for the e-books we publish, and we will provide retailers with a commission for each sale. There are no changes to our terms of sale for physical books. “The agency model guarantees a higher margin for retailers than did our previous sales terms. We are making this change both as an investment in the successful digital transition of our existing partners and in order to give us the...

The Bookseller reports that the investigation into agency pricing by the UK Office of Fair Trade could hold up any new publishers from switching to agency terms for as long as a year. Although OFT is careful to insist that the mere fact of an investigation should not be taken to mean that agency pricing is illegal, but given that nobody is sure yet which way the investigation is going to go, publishers are concerned about negotiating agency terms and then potentially having to turn right around and renegotiate new terms if the OFT finds against it. Nonetheless, publishers...

According to The Bookseller: The Office of Fair Trading has launched an investigation into agency pricing, following a "significant" number of complaints. The OFT said the investigation is "into whether arrangements that certain publishers have put in place with some retailers for the sale of e-books may breach competition rules". However, it added: "The investigation is at an early stage and it should not be assumed that the parties involved have breached competition law."...