“Publishers joining Apple’s iBooks store [sic] are turning their back on Amazon and its vision of the flat $US9.99 ebook,” Matt Buchanan writes for Gizmodo.
MacDailyNews Note: Like iTunes, iBooks is the app. It connects to Apple’s iBookstore, just as iTunes connects to Apple’s iTunes Store.
Buchanan continues, “Apple forced the music industry to charge 99 US cents per song, so why are they helping publishers set their own prices? To screw Amazon.”
“The difference between Amazon and Apple is this: Amazon is very much in the ebook business to sell ebooks.. Apple, on the other hand, sells content in order to sell hardware,” Buchanan writes.
“At this moment, Amazon owns ebooks. The book publishers’ fears are the same as the record labels with iTunes: They’re paranoid about losing control over pricing, and their own digital destiny. They’re worried that books are being undervalued, and that once people have the mindset that the price of an ebook is $US9.99, and not a penny more, they’re doomed,” Buchanan explains. “They needed an insurgent player: Apple.”
“Apple has advantages that Amazon didn’t have with music: Scale and technology. iTunes has just moved three billion iPhone apps. Apple’s sold over 250 million iPods,” Buchanan explains. “By contrast, Amazon’s sold an estimate 2.5-3 million Kindles since it debuted two years ago. Analysts predict Apple will sell twice as many iPads this year alone.”
MacDailyNews Take: The analysts that are predicting 5-6 million iPads sold this year are going to have to up their estimates; they’re too low.
Buchanan continues, “In terms of technology, e-ink looks old and busted and slow next to the iPad’s bright, colour display… An iPad can do more than books: Beautiful digital magazines, interactive textbooks, a dynamic newspaper. Oh, and it’s a computer that does video, apps, music. Amazon’s scrambling now to make a multitouch full colour Kindle after betting on e-ink, but that kind of development takes at least a year. Even if they churn out a full colour reader that is somehow better than the iPad, it likely won’t matter: It would just be a very nice reader to iPad’s everything else, and it would be nine months too late.”
“Price would’ve been Amazon’s major advantage over Apple too – being able to undercut Apple by setting whatever price they needed to compete would’ve been its ace in the hole against the iPad’s flashy colour screen, and everything else it can do. And now that’s poofed,” Buchanan writes. “Apple will be able to sell you ebooks for the exact same price as Amazon. By turning the publishers against Amazon, they’ve effectively dicked the Kindle over.”
Full article here.
MacDailyNews Take: The Kindle wasn’t cutting it, regardless of empty hyperbole from Bezos, willing accomplices in the media, and certain analysts. The publishing industry doesn’t have two decades for Amazon to maybe hit critical mass. Plus, Kindle is amateur-hour hardware (and software). Amazon doesn’t have the core competency to do such a device (or any device of any complexity, actually). Maybe Bezos could do an Amazon clip-on book light or something, if he wants to fool around with Amazon-branded hardware. If Amazon wants to sell e-books, then they need to forget about hardware devices — leave that to a real devices (hardware+software+services) company — and concentrate on their Kindle app for iPhone OS devices: iPhone, iPod touch, and iPad.
“You can kiss my ass.”
Gee, thanks. You don’t have a library?
Oh yeah, and I’ve read most of Salinger’s and Vonnegut’s books three times.
What happened to literate people?
Your is a possessive form of you, idiots.
I’m sorry, but unless Apple competes with Amazon in the audiobook market (Audible) then it really makes no difference to me what ebooks they sell. I can’t read an ebook while driving, mowing the lawn or working out like I can listen to an audiobook.
As far as reading, I still like paper, so bookstores and the public library will still see me on a regular basis.
What Apple did with music pricing made sense from several standpoints. First, the $0.99 model was attractive and simple for consumers. That was critical to the effort to kick off an online music marketplace and the music industry was a bit desperate and willing to experiment. These factors are far less applicable to the book industry. Second, the online price really wasn’t generally that much lower than the price of the physical media. However, consumers found additional value in the fact that they could purchase individual songs rather than being forced into buying albums to obtain only a few good songs. This may be applicable to some media, such as magazine articles, if the material is provided under that model. But it does not apply to books. You aren’t going to buy just chapters 1, 3 and 5. Third, the change in ebook pricing and revenue proportions greatly weakened Amazon and is already vaulting Apple into the dominant position, even before the iPad is available. Apple had to compromise and cede a greater degree of control to booksellers in order to gain this advantage.
All of that aside, the truth of the matter is in the first post by zmarc. The price of something is determined by supply and demand. If you believe that ebook prices are too high, then do not buy any of them. If enough consumers act along the same lines, then ebook prices will decline.
My biggest concern is that physical books will gradually become more expensive and less available. I like to be able to carry a paperback with me to enjoyably pass some time while waiting in line or for an appointment. How will libraries function in the age of ebooks? It seems to me that a single virtual library could address a large portion of the functionality of all of the existing brick and mortar libraries open today, *if* ebooks can be shared in the same way. But I am very concerned that ebook DRM will severely limit options in this regard.
I will miss the new book and old book smells, too.
Apple already does offer audiobooks through iTunes…
@ Sarasota
“… unless Apple competes with Amazon in the audiobook market”
Huh? Loof for that little CD icon in your dock with the music symbol. This App is called iTunes. Click that one time and welcome to a whole new world.
@ MacBill
“…Apple is turning its backs on consumers and letting the publishers charge outrageously high prices for their eBooks.”
zmarc (1st post) Already explained this to you in detail but you insisted spewing out your slanted point of view anyway?
“For those of you worried that ebook prices will be higher, they won’t: we the public set the prices. If they don’t sell at a certain price, the publishers will lower them.”
Book prices will be all over the board (as they should be) Publishers have every right to sell books for whatever the market will bear. Just like you can charge whatever you wish for your services. You’ll see titles selling for 99¢ up to $50 I suppose.
@bjh
“…MDN, where is your attack on publishers?”
See above.
NEWS FLASH:
I haven’t read the fine print but I don’t think it’s mandatory to buy an iPad or frequent the iBook store. If you don’t like the pricing, or prefer a real book, you are free to make your choice. (Just like a Publisher)
Seems to me it’s pretty simple.
If you think the ebooks are over priced – don’t but them.
If there really is such a thing as a free economy, the market will correct itself.
If there isn’t a free economy, what chance did you have anyway?
As I see it, Apple sold out. They sacrificed the 9.99 price to consumers in order to enter the market. Content is obviously going to be more expensive now that Apple has entered, thanks.
Still looking forward to the iPad though as I don’t read books (I’m a nerd, i read manuals).
“Maybe Bezos could do an Amazon clip-on book light or something,” …
I had a good laugh on that one.
@Ubermac
“No matter how u view it, there is nothing better than free markets and competition for the consumer.
I was never in favor of Apple dictating the music labels how much they can charge.”
I never had a problem with it. Someone needed to show the music industry that it was full of crap. The market proved that Apple was correct.
“As I see it, Apple sold out. They sacrificed the 9.99 price to consumers in order to enter the market. Content is obviously going to be more expensive now that Apple has entered, thanks. “
Bullshit. Prove it or STFU.
I don’t get this idea that Apple sold out or compromised in order to lure publishers from Amazon.
All Apple did is offer to publishers the exact same deal they do to App developers: the content maker sets the price and keeps 70% of the sale. Clean, simple, efficient.
If you look at Amazon, the fine print in their publishing agreement is 20 pages long. Their newest agreement (in order for the publisher to get the 70% rate) mandates that the publisher cannot sell the ebook anywhere else for less than Amazon sells it! Outrageous. What gives Amazon, a mere etailer, the right to set my prices on a different site?
I’m sorry, but I vote for simple and clear on this one. If I need a lawyer and an accountant just to figure out what Amazon owes me from my book sales, I’m publishing elsewhere.
Perhaps Amazon can make it up in volume by selling iPads at a
discounted rate. Say entry level at $450.00??
“My biggest concern is that physical books will gradually become more expensive and less available… How will libraries function in the age of ebooks”
New releases of physical hardbacks are now going for $27, a hell of a lot of money to pay for a book. No way many people are going to Barnes & Noble or Borders to shell out that much money for a single book, at least not without a 40% coupon. Borders is on the way out, much like Circuit City, CompUSA and the others, and it most likely won’t last the year. The writing is on the wall for libraries: they’re dead and will begin closing their doors en masse in the coming years.
In many ways the publishers have done this to themselves. Fuddy duddy CEOs and management were clueless to the digital revolution, hitting them totally unprepared for what’s coming. Out of the ashes young new start up, digital-only publishers will replace them. The only way traditional publishers will survive is to recognize the opportunities opened up by ebooks. If they think they won a battle with Amazon by being able to price their books for more than $9.99, they’re in for a big surprise. Jeff Bezos knows better.
@MacBill,
“eBooks cost the publishers virtually NOTHING on their end to produce. “
So, your work efforts amount to zero also?? People spend up to a year working on writing a book, not to mention the time it takes to develop the knowledge base in the first place.
But actually I would like to see music artists and writers bypass the whole studio thing and go directly to direct publishing. Getting 70% of their sales (- some small amount to a middle man who knows how to make the whole thing work) sounds much better.
Just a thought.
en
I agree the market will ultimately decide. I suspect publishers had enough leverage to get a pricing compromise… that is, Apple needs them and they need Apple.
As for me, eBooks are worth less than paperbacks which are less than hardbacks. If not, I’ll buy the physical versions. I believe that’s a common feeling.
Why is everyone missing the most obvious difference?
If you sell something for less than a dollar, everybody will buy it. That’s how iTunes store became what it is. But selling something at $10 instead of $12 will not make an ounce of difference.
Amazon, thinking they were smart by copying Apple’s lead to set the price, didn’t realize what Apple does, that at this price point it doesn’t help sales at all.
Why would anyone with an iPad use the kindle app when there is iBooks?
Kindle is screwed.
@Renaldo
I don’t know if you have visited a local library lately, but all of the libraries near me are always packed.
Especially after school there are usually no empty seats.
I don’t see a mad rush to close public libraries.
It’s simple. If e-books are priced too high in the iBooks Store and on Amazon, the prices will come down.
Apple didn’t screw over anyone but Amazon. Amazon was screwing over the publishers and indirectly the authors. They won’t from now on. Consumers will set the price with their buying decisions.
@MacBill
You are an idiot.
What, writer’s hard work counts for nothing? You don’t want to pay them what their work is worth?
As I have said before in these forums, stop by and shovel all the snow out of my drive for $3.99. That’s what I think “your” hard work is worth.
I read about 3-4 books a week, with Stanza, search their free books, thousands of older books, lots of classics, I’ve gotten hooked on old
sci fi books, read “After London”. , after you read it, look at what year it was written , you’ll flip
All the others bitching about the paperbacks being cheaper than what Apple will charge.
You are forgetting that books are released in stages: Hardback, paperback, discount shelf. EBooks will be released the same way: Highest price for certain amount of time, lower price for another amount of time, cheapest price for another set amount of time.
See, it’s really easy to understand now.
Hopefully you all complaining get it this time.
Apple is not the bad guy, they are just letting the publishers sell their stuff at the price they want.
Let the market decide.
Or put it this way: Should Apple force all Apps in the iPhone store to be sold for 99¢? Even the ones that are currently $20, $50, $100?
Why do App developers get to set their price? Oh I get it, eBooks are different.
…or Apple was only able to come to an agreement with publishers if they charged more for an eBook than Amazon. Apple is a big hardware maker, but a fringe player in the eBook market. For Buchanan to think that Apple arbitrarily picked $14.99 just to screw over Amazon is stupid. Apple can get away with allowing publishers to charge the higher prices they demanded because of the added value of the iPad. It just so happens that Amazon – for whatever reason – decided to cave and allow publishers to charge more. There goes your price advantage. You could have at least let Macmillan squirm for a few weeks before bending over.
And for people commenting on how much it costs to make an eBook and how that should be reflected in the price should seriously considering killing themselves. The medium by which the work comes to market is nothing compared to the investment in writing and promoting it. It’s kind of pathetic that I’d have to spell that out, but it seems a few commenters have their heads up their asses. You’re welcome.
@Think,
I didn’t forget that paperbacks are delayed… one of the reasons why they’re cheaper. Thanks for bringing that up… but they’re still worth more to me than eBooks.
Btw, I do think there’s value and other people may find them more useful. However, they’re virtually free to “manufacture” and they’re less portable (I won’t take the iPad to the pool, beach) and they’re not transferrable (loan, sell)… do’t need to be recharged.
I can beleieve the industry will have big changes. Maybe B&N;stores close… but right now libraries are more crowded than ever.