With all the hype, leverage potential and uber proprietary platform, why wouldn’t publishers jump ship to Apple? It’s a rather sad state of capitalistic greed, out to scrooge the consumer. Isn’t more competition suppose to reduce prices? Seemingly not, what with a third [large] publisher set to switch from camp Kindle (Amazon) to iPad (Apple).
Apple’s infamous stance on DRM makes the move seem sadly inevitable, as it stacks up as another reason why they begin to hold a majority of publishers favor. Amazon on the other hand, is renowned to fight for DRM-free low cost content – check out their awesome mp3 store for example – thusly taking the side of the consumer. While Apple’s stores oft take to exploiting its platform popularity to permit for higher cost content and superfluous copyright protection.
Furthermore since dinosaurs still roam the free market, their influence is impossible to outright ignore.
“We don’t like the Amazon model of $9.99 . . . We think it really devalues books and hurts all the retailers of hardcover books . . .And now Amazon is willing to sit down with us again and renegotiate.”
Ahh Rupert, Mr. Murdoch you stay classy, what with your intense inability to expand beyond your traditional business models. Paid web content? Not going to happen, at least not the way you invision. But, I digress.
A lower priced product makes perfect economical sense, lower the cost to the consumer and you’ll sell more. Raise prices, sell less, profit less. Amazon already takes a loss at the current price point of $10 for new book releases. I imagine this is in effort to promote their own platform’s (i.e. Kindle) vitality.
And that’s ok, because they understand the economic balance. So, this means either publishers are simply getting greedier, as the cost to produce an eBook is about as close to $0 as it gets. Or Amazon is expected to make up for the cost of producing a hardcover book that is predominantely sold at retail stores that are far & wide going out of business.