Not All Publishers Pyched About Apple's Agency Model
Although Steve Jobs said the prices for eBooks “will be the same,” not everyone is convinced Apple’s Agency model–it’s 70%/30% split on content pricing–is a great ideal. (This is the very same model that Macmillan and Hachette have been fighting Amazon over. TCI Research, a digital media research firm, published a report yesterday stating that “one major book publisher we spoke with”–whom they obviously can’t name–“sees no reason to shift to that model right now or anytime in the near future.”
Here’s more from the report:
The reason is that book publishers make less money from the agency model than they do from the traditional wholesale model (in which Amazon buys a book license at the full wholesale price, and then sells each copy for whatever it wants, often losing money on the sale).
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