eReaders Blog

The Future Of Reading

Amazon capitulates and accept Macmillan’s terms

Posted by admin on February 1, 2010

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Until now, Amazon has set e-book prices with $9.99 as the default for new releases and bestsellers.
But last week, Macmillan changed how they want to price their publications, $12.99 to $14.99 for new released e-books.

On Friday, Amazon removed “buy” buttons from thousands of titles published by Macmillan, including recent bestsellers. Customers who wanted to buy print editions could do so only from third-party sellers. Digital editions made for Amazon’s Kindle device disappeared.

But yesteday, Amazon.com finally surrendered to Macmillan and agreed to raise prices on some e-books.

The Amazon Kindle team announced it on Kindle forum:

Dear Customers:

Macmillan, one of the “big six” publishers, has clearly communicated to us that, regardless of our viewpoint, they are committed to switching to an agency model and charging $12.99 to $14.99 for e-book versions of bestsellers and most hardcover releases.

We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles. We want you to know that ultimately, however, we will have to capitulate and accept Macmillan’s terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books. Amazon customers will at that point decide for themselves whether they believe it’s reasonable to pay $14.99 for a bestselling e-book. We don’t believe that all of the major publishers will take the same route as Macmillan. And we know for sure that many independent presses and self-published authors will see this as an opportunity to provide attractively priced e-books as an alternative.

Kindle is a business for Amazon, and it is also a mission. We never expected it to be easy!

Thank you for being a customer.

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One Response to “Amazon capitulates and accept Macmillan’s terms”

  1. Anonymous said

    worrying much more about their customer. This will be the only means that i purchase books any longer. All of the price ranges for brand spanking new hard cover books is usually outrageous. This is not to even point out the obscene price ranges they demand for paperbacks. Score one more win for corporate greed.

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