Imbedded in the stand-off between Amazon and Hachette is the whole idea of how to price an e-book so a publisher, bookseller, and author can sell the as many units possible for the best revenue stream. There’s an article at www.publishersweekly.com that provides a very detailed discussion of this – here’s the link:
It’s a fascinating look at what goes into pricing e-books, at least in the Amazon/Hachette dispute example. Of note, at least for me, is that Amazon claims that Hachette’s pricing of e-books at $14.99 actual stifles sells. A posting at Amazon’s website makes the argument that pricing e-books at $9.99 will sell 1.74 copies compared to books being priced at $14.99.
And Amazon ought to know given the volume of books they sell.
But what really stood out for me in this article was the following:
“Keep in mind that books don't just compete against books. Books compete against mobile games, television, movies, Facebook, blogs, free news sites and more,” Amazon writes. “If we want a healthy reading culture, we have to work hard to be sure books actually are competitive against these other media types, and a big part of that is working hard to make books less expensive.”
It’s an interesting perspective.