Giant online retailer Amazon.com recently discontinued the sale of Macmillan titles. Macmillan is considered as one of the top 6 publishers across the globe. Amazon had to resort to this action because of a disagreement on the consumer’s price for Amazon Kindle and ebook users. Announced via a post at Amazon.com, the Kindle Team wrote that they would eventually have to go with the Macmillan conditions, because they want to offer the customer the option. Macmillan’s titles will be priced from $5.99 to $14.99.
The Macmillan group states that they may 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 industry has followed an agency model that has provided profit to all involved, and Macmillan states that the digital market needs a model to follow as well.
It’s true that the publisher, retailer, author and/or illustrator is in this industry to generate money. This monopoly, however, will hurt the customer in the end.
Amazon’s temporary exclusion of Macmillan titles is to express their protest of the higher cost, and according to Macmillan’s CEO, the miscommunication is about the long term market. Obviously the retailer and publisher have different view points. Amazon believes that other publishers won’t go along with Macmillan’s lead. But since it is clearly for their advantage, what would stop other publishers from doing the same?
If we take a look at the tangible book market, a consumer who wants to buy the newest and best hard cover books will do so. If the desire can be tamed, then they may watch for the cost to take a bit of a dive. The question is, why should things be any different in the digital book market?
A boycott against Macmillan is perhaps a suitable response, however, would it really last? Once a reader is tempted by a fresh title from one of Macmillan’s exciting writers, the purchase price doesn’t make a difference any longer.
Individuals will continue to acquire what makes them happy. The simple pleasures of reading a book has become convenient and so accessible with the use of the Kindle technology. This alone is enticing, and when you add a new Macmillan title, the consumer will bite. We haven’t been able to fight the urge when it comes to an interesting read.
Amazon has more than 400,000 titles available so even if Macmillan ebook prices are steeper than the $9.99 ebook cost that Amazon would have wanted to maintain, Kindle users still have a wide range of options to choose from. Visit us to find out what else the Amazon Kindle has to offer and why it is the most popularebook reader today.
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