Giant online retailer Amazon.com lately stopped the selling of Macmillan titles. Macmillan is established as among the top 6 publishers worlwide. Amazon had to resort to this move as a result of a disagreement on the consumer’s cost for Amazon Kindle and ebook users. Announced via a notice at Amazon.com, the Kindle Team wrote that they would sooner or later have to accept the Macmillan terms, because they would like to give the customer the option. Macmillan’s titles will be priced from $5.99 to $14.99.
The Macmillan group claims that they may actually generate less profit while Amazon makes more using the digital agent model. The retailer (Amazon) will receive 30% cut from the ebook sales. The tangible book market has followed an agency model that has provided considerable gains to all involved, and Macmillan states that the digital market needs a model to follow as well.
It is true that the publisher, retailer, author and/or illustrator is in this industry to make money. This monopoly, however, will hurt the consumer in the end.
Amazon’s removal of Macmillan titles is to express their protest of the higher cost, and according to Macmillan’s CEO, the miscommunication is more on 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 move. But since it is clearly for their benefit, what would stop other publishers from doing the same?
If we look at the tangible book market, a consumer who wishes to purchase the latest and best hard cover books is going to do so. If the desire can be tamed, then they will watch for the cost to take a bit of a dive. The issue is, why should things be any different in the digital book market?
A boycott against Macmillan might be appropriate, but, would it really last? Once a reader is tempted by a fresh title from one of Macmillan’s exciting writers, the price doesn’t have much weight any longer.
The consumer will continue to buy what makes them happy. The simple pleasures of reading a book has become convenient and so simple by using Kindle technology. This alone is enticing, and when you add a new Macmillan book, reading enthusiast will take the bait. We haven?t been able to fight the urge when it comes to an interesting read.
Amazon has over 400,000 titles available so even if Macmillan ebook prices are much higher than the $9.99 ebook price tag that Amazon would like to stick to, Kindle users still have a wide range of ebooks to choose from. Visit us to find out what else the Kindle has to offer and why it is the most popularebook reader today.