Amazon Gives In, Will Sell eBooks On Macmillan's Terms

Illustration for article titled Amazon Gives In, Will Sell eBooks On Macmillan's Terms

Amazon has given in to Macmillan, and will switch to a pricing model that sees eBook versions of bestseller and new hardcover releases offered to customers at $12.99 to $14.99. The official statement is as follows:

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.

Well, that was quick. [Kindle Community]



Then there is Baen, the master of ebook publishing. They found a legitimate way of charging $15 — by giving more value.

If you want a pre-release copy of a Baen book ( you can get it for $15. Once it comes out in hard copy, the price falls to $6. Or, you can get it even cheaper as a package deal.

In this case, I don't mind paying extra for extra value (early access). And once its generally released, Baen recognizes the value needs to fit in below hardback pricing.