Amazon has managed to knock over the domino that has set the ebook biz ablaze. So much for books that were $9.99....
"And here's the deathblow: Murdoch says News Corp's deal with Apple "does allow some flexibility and higher prices" and now Amazon's willing to renegotiate. It seems brutally clear that every publisher is going to shift to the agency model: They set their own price for books, and whoever's selling it takes a cut. Sure, they get less absolute dollars per book than selling it wholesale—say, selling it to Amazon for $15, who takes a $5 hit to sell it for $9.99—but they're convinced it'll preserve the value of books. I'm sure that's exactly what's going to happen when ebook prices everywhere creep up by several dollars—people will totally think they're worth more."
http://gizmodo.com/5462724/another-blow-in-the-great-amazonapple-publishing-war-harpercollins
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