@spasewalkr according to Charlie Stross in the Amazon model publishers sell to amazon at a discounted rate then amazon sells at whatever price they feel.(meaning amazon is setting the price not the publisher) In this model amazon ends up taking as much as 70^ of the profit. In the apple model apple sells it at a fixed price and takes 30% cut regatdless of price. \ Although in reading the Charlie Stross article I certainly detected some form of biased on his part. I'm not fully buying what he is saying.
@Edobe Amazon loses money just to establish their kindle store. Heck, amazon was doing the publishers a favor but they want to ride the apple bandwagon. What a joke
You say they were doing the publisher a favor? But were they really?
They were buying books for $14.00 and selling at $9.99 losing $4 on every purchase to push the Kindle. Sounds great to Kindle customers. But the publishers then have no one else to sell to on the competing e-readers unless they can get their prices down to $9.99 also, which means since those other e-book sellers would need to bleed money also to compete or the publisher has to give them the content under the $9.99 mark to keep them in the ball game. If you are a publisher that wants to sell e-books do you tie yourself to one reseller and exclude all the others or do you want all the resellers to sell your book?
Also the say they changed the Amazon cut from 70% to 30% a few days before the Apple event, but to get that there are some major consessions you have to give away to Amazon that almost lock all e-books into being on Amazon only. Thats not good for the customer at all in any way.
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can somebody quickly explain the difference between the two pricing models to me?
or is it just that iBooks is more expensive?
@spasewalkr according to Charlie Stross in the Amazon model publishers sell to amazon at a discounted rate then amazon sells at whatever price they feel.(meaning amazon is setting the price not the publisher) In this model amazon ends up taking as much as 70^ of the profit. In the apple model apple sells it at a fixed price and takes 30% cut regatdless of price.
\
Although in reading the Charlie Stross article I certainly detected some form of biased on his part. I'm not fully buying what he is saying.
@Edobe Amazon loses money just to establish their kindle store. Heck, amazon was doing the publishers a favor but they want to ride the apple bandwagon. What a joke
@chrisrottan
You say they were doing the publisher a favor? But were they really?
They were buying books for $14.00 and selling at $9.99 losing $4 on every purchase to push the Kindle. Sounds great to Kindle customers. But the publishers then have no one else to sell to on the competing e-readers unless they can get their prices down to $9.99 also, which means since those other e-book sellers would need to bleed money also to compete or the publisher has to give them the content under the $9.99 mark to keep them in the ball game. If you are a publisher that wants to sell e-books do you tie yourself to one reseller and exclude all the others or do you want all the resellers to sell your book?
Also the say they changed the Amazon cut from 70% to 30% a few days before the Apple event, but to get that there are some major consessions you have to give away to Amazon that almost lock all e-books into being on Amazon only. Thats not good for the customer at all in any way.