Agency, Pricing and the Seven Things Publishers Need to Remember

A detailed post from Michael Tamblyn of Kobo about the pricing metrics of eBook publishing, particularly focussing on the agency model being proposed by Macmillan, to which Amazon ‘capitulated’ after cutting them off over the weekend.

Michael includes some interesting information for those following Amazon’s line on the Agency pricing model, particularly this snippet countering the ‘money-grab’ accusations:

It isn’t really a revenue grab for publishers. In most cases, the publisher makes less. That $35.00 Under the Dome that the publisher made $17.00 on? With agency, they might make $10.50. But they won’t run the risk of some retailer forcing them to price it at $15 and making $7.50.


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