Macmillan Monopoly: Steeper Prices for Ebook Readers
Despite Amazon’s efforts, Macmillan, one of the top publishers in world, is sticking with the new agency model, and not offering lower prices for Amazon Kindle or Ebook owners. Amazon has temporarily stopped sale of Macmillan titles as protest, but Macmillan obviously owns and controls all of its titles. Amazon stated that they eventually will have to accept Macmillan’s terms because they want to offer the customer the choice. It will be up to the buyer to justify a price as high as $14.99 for the latest and greatest ebook.
The Message
Macmillan’s CEO, John Sargent, added an explanation in the Macmillan website, addressing it to “Macmillan authors/illustrators and the literary agent community” with a reference to “missing books on Amazon”. To sum it up, he makes the point that the ink-on-paper world has followed an agency model that is profitable for all involved, and that the digital ebook market needs one as well. Under the digital agency model, Macmillan will sell the digital versions to the consumer through the retailers. The retailer will get a 30% commission. So, the plan is to price the digital versions in the range of $5.99 to $14.99.
The Disagreement
Macmillan claims that Amazon will make more money, and that they (Macmillan) will make less. According to the Sargent’s message, the disagreement isn’t about the short term, but the long term “viability and stability” of the market.
The Conclusion
I understand that everyone needs to make money, the publisher, the retailer and the actual author and/or illustrator, but the Macmillan monopoly will in the end, put a dent on the consumer‘s pocketbook. Although the Kindle team stated that they thought other publishers wouldn’t follow by example, why shouldn’t they? If I find an eager itch to read the newest hardback, I’ll pay the thirty bucks, so why wouldn’t I pay extra for the new digital version? I just can’t wait, that’s why.
I could boycott all Macmillan titles for awhile, but the excitement of a new read will get the best of me. The nagging voice in my head will remind me of this topic, but I will somehow ignore it as the addiction to reading a new book on my Kindle will get the best of me. It is American marketing, and I haven’t overcome the urge yet.