Paul Aiken, the executive director of Authors Guild, said that after entitling the self-pricing right to Macmillan, a publisher, Amazon continued to take negotiation with other five American publishers and is likely to make concession on pricing right and dividend.What's Prettiest now?: christian louboutin
Amazon states this week that it agrees with McMilan on selling Kindle e-book at a maximum price of $14. Pro even Bought christian louboutin for Mother! 99. Amazon used to price Kind E-books at 9.99 US dollars, hoping to attract more Kindle users by low price. Collins Stewart with an investment bank contends that Amazon`s concession to Macmillan makes Kindle more fragile to attack from its rivals. According to Aiken, at least 5 publishers can sign the agreement with Amazon. Other publishers will also continually follow up, for it's not responsible if not follow up. Amazon said this week that it didn`t hope all publishers to do the same as Macmillan. But its spokesman declined further comment. Comment isn`t available from Pearson PLC-affiliated Penguin, Bertelsmann-affiliated Random House, News Corporation-affiliated HarperCollins, CBS-affiliated Simon & Schuster, Hachette Book Group and Macmillan either. The debut of Apple`s iPad tablet PC last Wednesday was followed by the agreement between Amazon and Macmillan. iPad put in place a brand new E-book platform for publishers. Apple will also set up its own digital bookstore, which is similar to that of iPhone online store.
Source close to the issue says Apple will grant publishers right to decide prices and 70% of the total profit. Aiken says it`s a good news to publishers who used to worry that Amazon attempts to keep low of price in advantage of dominant role of Kindle in the market. He also states that Amazon now buys books from publishers at the price of $12 to $13.Since the price of the bestsellers of Kindle is only $9.99, Amazon is in fact selling at a loss. That's why publishers think Amazon will request to have lower wholesale price. He said, "No one would think that Amazon would always sell e-book at a loss." Imran Khan, an analyst with Morgan Stanley holds that the price hike of Macmillan isn`t likely to depress demand or deal a blow to Amazon`s sales. At least a decline of 30% in E-book sales can cause a dip in Amazon`s revenue. Khan reasons that best-selling books won`t be Amazon`s main channel for profit at any rate. Through recommendation system, Amazon can make profit by selling old books or less-popular ones. Sales of E-books and Kindle amount to less than 3% of total revenue of Amazon.
Kaufman BrosKaufman Bros and analysis Aaron Kessler from investment bank think that high sales price will probably do favor to small scale retailers, for they can not compete with Amazon. Amazon can reduce sales price mainly because it can reduce cost by huge sales volume. Amazon will lose some of its advantages if it fails to popularize low-price e-books. Last weekend, Amazon stoped to sell all books from McMillan to express "serious protest". McMillan once threatened Amazon to put off the publication of e-book if it didn't raise the price.
Apple`s spokesman, Colin Smith says, [we are not yet declare the prince of iBook, but more detailed information will be provided before iPad going on sale at late March." On January 20th, Amazon declared a new e-book plan, providing 70% sharing for authos and publishers. According to the agreement, the sales price of e-book can not exceed $9.99 and it must be at least 20% lower than printing books. However, Apple offers looser pricing policy for publishers. Khan says: even if all the publishers raise the price for bestsellers, we don't think it will have negative influence on Amazon. Morever, it is still full of doubts about the final situation.