|Loosely related eye candy|
- The pirate's view: Why shouldn't an ebook's price reflect the marginal cost of production (i.e., be free)?
- The producer's view: Because, apart from production, there are other costs. That is: payment (one hopes) for the contributions of authors, editors, cover artists.
- The retailer's view: Looking at single titles is too narrow a focus. No matter the conflicting wishes of the author (for whom each book is a unique product!) or the publisher (who wants the product category of books to retain intrinsic value), retailers find opportunity in books (or other intellectual content) sold as loss leaders. Etailers use loss leaders to lure a consumer to a particular gadget and ecosystem (Kindle, Nook, iBook, etc).
Did Apple collude with publishers? We'll likely know more soon, because Apple CEO "Tim Cook to testify in eBook price-fixing case for four hours."
Amazon, which had opposed the agency model, is doubtless pleased with these recent events. That doesn't mean the publisher/etailer wars have ended. Consider that:
Two publishing industry groups, the Authors Guild and the Association of American Publishers, are opposing Amazon.com Inc's request to own new domain names, The Wall Street Journal reported.
The organizations argue that allowing Amazon to have such domain addresses that end in suffixes such as ".book," ".author" and ".read" would be a threat to competition, the paper said.