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On this blog we will track down the latest Amazon Kindle news. We will keep you up to date with whats hot in the bestsellers section, including books, ebooks and blogs... and we will also bring you great Kindle3 tips and tricks along with reviews for the latest KindleDX accessories.

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September 2016
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HarperCollins Might Also Push Amazon To Increase Kindle eBook Prices

harper_logo_small-1Looks like the publishers are not through making Kindle eBooks over all a much pricier place. After Hachette followed in MacMillan’s foots steps, it looks like Harper Collins might be the next publisher to re-negotiate their terms with Amazon. Rupert Murdoch has expressed his dislike of Amazon’s $9.99 policy for eBooks and he says that it hurts hardcover editions of the the same books.

Rupert Murdoch is the chief at News Corp, the company that owns, amongst multiple other media outfits, publishers HarperCollins. Hence, if he thinks Amazon is hurting Harper Collins book sales, there might be trouble for Amazon. Yet again that is.

It hasn’t been all that long since MacMillan settled their deal with Amazon to have their books priced higher on the Kindle. Murdoch has mentioned that even though Amazon pays them the usual $14 or whatever wholesale price they do charge, the ultimate low price hurts over all book sales from other outlets. According him, Amazon is willing to sit down with them and renegotiate the terms.

Even though he puts it as if they will talk things over, there is no doubt that he will really try to push Amazon into accepting a higher pricing scheme for HarperCollins eBooks. If this goes through, it might become the turning point in Amazon’s eBook pricing scheme. Once three such major publishers force their deals through Amazon, there will be little in the hands of Amazon to change the over all pricing of eBooks.

Of course, a lot of people will see opportunity in this and will offer books for cheaper than the major publishers. For light reading thus, a lot of people might choose cheaper alternatives. But for best sellers and major titles, buyers are the ones who will bear the price difference. Interestingly, Amazon will finally be gaining money on &9.99 books instead of losing it as they do now. But it will serve to lower their appeal to buyers, which is ultimately not a good thing.

MacMillan Forces Amazon To increase eBook Prices To $14.99

MacMillan LogoIn a recent drama, MacMillan made it publicly known that they were having problems with Amazon over the pricing scheme of eBooks on the Kindle platform. MacMillan was apparently already in talks with Amazon for quite sometime about the prices being raised from Amazon’s current $9.99 maximum price.

Whilst everyone can see that over pricing digital content can really backfire (look at digital music or movies for lots of examples), it seems like MacMillan has been really hell-bent on increasing the pricing based on their latest agency model. Under this model, MacMillan would like to make sales through agents, who would charge the normal 30% commission that standard throughout the industry. The extra cost of course gets pushed on to the buyers and this is where Amazon did not want to comply with MacMillan’s requests.

After negotiations broke down, Amazon took off all MacMillan books from the Kindle store. However, even then the Kindle makers acknowledged that MacMillan owned too many important titles for Amazon to be able to keep those books away from Kindles. And true to their predictions, Amazon ultimately had to give into MacMillan’s demands to increase the prices.

Under the current model, the eBook prices will be capped at a maximum of $14.99 instead of $9.99 as per existing models. The average prices are supposed to start from $5.99 and go up to $12.99 but the real situation would be that most important titles will be priced between $12.99-$14.99. MacMillan gave everyone a glimmer of a hope saying that they will bring the prices down dynamically. However, that simply means that they will gradually reduce prices on existing titles but will likely price newer titles high.

These new prices put Kindle costs on the same level as those on iPad, making the gap between the two become much smaller when it comes to pricing.