Posts tagged pricing
E-book sticker shock redux: Slowing the industry, missing the point
December 18, 2011 | 8:23 pm
The Wall Street Journal article on e-book sticker shock that we covered a couple of days ago has been drawing a number of reactions. CBS Marketwatch offers a piece noting that the high e-book prices are slowing the growth of the industry. It points out that e-book prices have implications for e-reader prices, too, because consumers won’t want to pay high prices for an e-reader if they’re going to have to pay a lot for the books, too. The question is who gets hurt worse. According to the Journal, both Amazon and industry executives claim that...
Did Elvis Costello really tell fans to pirate his new album?
November 30, 2011 | 1:21 am
Perhaps it’s a sign of how the digitization of media has changed the marketplace that its misuse can be interjected into a complaint over the pricing of traditional media—and misinterpreted. A complaint by Elvis Costello that his record company is pricing his new album too high has been interpreted by BoingBoing and Techdirt to mean he thinks fans should pirate the album. However, the evidence on the site suggests this interpretation is not quite accurate. On the 18th, Costello posted an entry to his blog entitled “Steal This Record.” decrying the price of over $200 for his...
Mike Shatzkin discusses e-book price and revenue structures
November 27, 2011 | 10:57 pm
Mike Shatzkin has another fascinating essay in which he goes into detail about how e-books are priced by various actors in the e-book publishing industry. He explains that the break between agency pricing and non-agency pricing creates two separate standards—the “digital retail price” (of which agency vendors take 30% and are not allowed to change), and the “suggested retail price” (which is usually close to the cost of the lowest print version, and agency vendors pay half of to the publisher but can then choose to mark down for their own sales).
The non-agency publishers who sell to Apple are obliged...
Is Amazon really losing $5 on each $79 Kindle—and if so, does it matter?
November 12, 2011 | 11:32 pm
Over the last few days, MainStreet did another one of those pricing breakdowns of components for the $79 ad-supported Kindle e-reader, and ended up determining the device costs just over $84 to make, therefore Amazon will be selling each unit at a $5 loss (at least). It’s being widely reported in a number of places, but I have to say I’m frankly rather skeptical. I reported a couple of months ago on a price estimate for the Kindle Fire that claimed Amazon was losing $50 on each unit. Then other estimates suggested it was losing $10, and another said...
Does a consumer desire for free digital content imperil the future of the book?
October 2, 2011 | 10:15 am
Sam Harris has posted a rather provocative entry to his blog discussing the problem faced by writers in an era when audiences “increasingly expect digital content to be free” and have such short attention spans that increasingly full-length books are seeming just too long. It’s a topsy-turvy world, Harris posits, when people with popular blogs get so many hits that publishing it in even a famous and well-regarded magazine like Vanity Fair is “tantamount to burying their work” by comparison. He cites as example an article by his friend Christopher Hitchens, whose numbers of Facebook likes and Twitter...
Kindle with Special Offers price model represents sea change for e-reader market, by Felix Torres
September 29, 2011 | 10:38 am
TeleRead reader Felix Torres originally posted this as a comment to my earlier story, but I felt it was so cogent and well-written it deserved promotion to the front page. –CM Yes, Kindle’s new baseline pricing is a serious problem to competitors. But it’s actually bigger than it looks. Beyond the unreachable advertised prices, an added problem for competitors is that the subsidized Kindles aren’t just flashing ads, but offering up discount coupons. If it were just ads, it would be easy to sign up with Google or Microsoft to feed banner ads to their connected...
New Kindle price model may present quandary to competitors
September 28, 2011 | 7:33 pm
Yesterday, perhaps hoping to stage a preemptive strike on Amazon, Barnes & Noble announced a new cooperative venture with self-publisher Lulu.com, which is supposed to make it easier for Lulu customers to get their books published as Nook e-books. However, given that B&N was already partnering with Lulu on self-publishing e-books, it is entirely unclear how it was harder before and how it will be easier now. And this bright bundle of glittering generalities does not seem to have helped in the end. Barnes & Noble’s stock was down by as much as 13% after Amazon’s Kindle announcement today,...
Publisher e-book pricing still contentious issue
September 20, 2011 | 10:15 am
One of our posts mentioned and quoted a little of this story from the Economist last week, but upon actually reading the story I found a number of interesting points that bear consideration on their own. First, of course, is the whole “Ikea predicts the death of paper books” thing, which The Economist extrapolated from hearing that Ikea is introducing a new deeper version of its “Billy” bookshelves, meant for displaying stuff that wasn’t actually books. (It turns out this actually wasn’t true; the original 11” Billy will continue to be stocked right alongside the 15” deep version;...
GenCon Interview: Self-publishing author Michael Stackpole (Part Two)
September 16, 2011 | 12:15 pm
Here is the second ten minutes of the thirty-minute discussion I had with Michael Stackpole at GenCon last month. I will be posting the final part in days to come. The first part can be found here. Stackpole is best known for his extensive work in writing BattleTech and Star Wars tie-in novels, and he also wrote the novelization of the recent Conanmovie. We have covered Stackpole’s blog posts on self-publishing fairly extensively over the last few months, as well as his GenCon panel seminar. In this segment, we discuss piracy, e-book pricing, editing, and the “Storyteller’s Bowl”...
Amazon proposes ‘Netflix for e-books’ for Prime subscribers
September 11, 2011 | 11:15 pm
The Wall Street Journal is reporting that anonymous sources say Amazon is in talks with publishers to launch a “Netflix for e-books” service for Amazon Prime subscribers, under which the subscribers would get free access to an electronic library of older content. It would take its place alongside the streaming movies and TV shows Amazon already offers Prime subscribers. Amazon is planning to offer publishers “a substantial fee” for taking part, but it may have an uphill battle. If publishers were so threatened by $9.99 e-books maybe giving consumers the idea that e-books should be cheap that they upended...
GenCon panel: Michael Stackpole on self-publishing in a post-paper world
August 9, 2011 | 12:36 pm
This is my coverage of Michael Stackpole’s presentation on how writers can take advantage of the e-publishing revolution. Stackpole does charge for this talk (it was $8 at GenCon; he will be giving it again at DragonCon in September), and gives it at a number of conventions. It was a very interesting panel, and more than worth the admission fee. If you’re in the area of DragonCon, or any other convention where Stackpole is speaking, I strongly encourage you to go. In deference to his need to earn a living, I will condense my detailed notes down to general...
Can students save money with digital textbooks?
August 6, 2011 | 1:41 pm
SFGate took a look at all the ways today's student can purchase access to a textbook—buying the latest print edition, buying used or older editions, and buying or renting digital editions—and found that thanks to high pricing and inflexible rental periods, going digital is only occasionally a good solution:
Each textbook will have a unique set of prices for its different versions, so it makes sense to consider e-textbook rental on a case-by-case basis. However, for the time being it appears that e-textbook rental will only save students money when having a new edition of a textbook is important, and when...


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