Steeper Prices for Ebook Users: Macmillan’s New Model
Amazon recently discontinued the selling of Macmillan titles. Macmillan considered as one of the top 6 publishers across the globe. Amazon decided to resort to this move because of a disagreement on the consumer’s cost for Amazon Kindle and ebook users. Announced via a notice at Amazon.com, the Kindle Team wrote that they might sooner or later have to go with the publisher’s terms which will mean more steeper Macmillan ebook prices, because they would like to offer the Kindle owner the option. Macmillan’s titles will be priced from $5.99 to $14.99.
The Macmillan group claims that they are going to actually make less profit while Amazon makes more with the digital agent model. The retailer (Amazon) will get a 30% cut off the titles. The physical book market has followed an agency model that has furnished profit to all involved, and Macmillan states that the digital market needs a model to follow too.
It is true that the publisher, retailer, author and/or illustrator is in this industry to make money. This monopoly, however, will hurt the consumer in the end.
Amazon’s temporary exclusion of Macmillan titles is to express their disagreement on the cost, and according to Macmillan’s CEO, the miscommunication is more on the long term market. Obviously the retailer and publisher have diverse view points. Amazon believes that other publishers won’t go along with Macmillan’s example. But since it is obviously for their advantage, what would hold other publishers back?
If we check out the tangible book market, a consumer who would like to buy the newest and best hard cover books will do so. If the desire can be tamed, then they will watch for the cost to take a bit of a dive. The question is, why should it be any different for the digital book market?
A boycott against Macmillan might be appropriate, however, would it really last? Once a reader is tempted by the most current title from one of Macmillan’s exciting writers, the purchase price doesn’t matter any longer.
The consumer will continue to buy what makes them happy. The simple pleasures of reading a book has become convenient and so accessible by using ebook reader technology. This alone is enticing, and when you add a new Macmillan title, the consumer will bite. We haven’t been able tofight the urge when it’s time for an interesting read.