Good news for cheapskates, bad news for traditional publishing: “Agency pricing,” which many in the book business had hoped would prove a defense against Amazon’s discounting every new book to $9.99, is pretty much finito as of today.
A bit of background: At issue is the agency model, which first came into play when Apple debuted the iPad and began talking to publishers about ebooks. Apple liked the sound of an agency model, where publishers would set the price and and Apple would merely act as agent, taking a cut of the transaction. This looked like a way of finally breaking Amazon’s iron-fisted insistence on charging $9.99 for a standard new release, which would otherwise go for $25.00 in print. Read More