How Will Amazon Respond To Lack Of Agency Pricing?

HarperCollins, Hachette and Simon & Schuster have settled with the Justice Department  after being sued over alleged eBook price fixing. Apple and Macmillan are standing their ground  and going to court over the issue. With agency pricing on the way out, people in the publishing world are speculating about what this means for Amazon.

The Wall Street Journal reports: “Amazon called the settlement a victory for consumers and users of its Kindle e-reading device. It promised to renew discounting, which could put pressure on such rivals asBarnes & Noble Inc. ‘We look forward to being allowed to lower prices on more Kindle books,’ Amazon said.”

What will Amazon, not bound to an agency model, do with the prices or its eBooks? James McQuivey, principal analyst at Forrester, told Digital Book World, “Amazon is going to want to bring prices down but they’re going to do it strategically. Amazon will lower prices with some best-sellers first, but they’re not going to cut across the board.”

What do you think?

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