Otaku Gadgets

Well, there we have it folks, MacMillan has just confirmed (through a paid ad no less) that they really have been having problems with Amazon regarding the pricing of eBooks. The ad appeared on Publishers Lunch and it explains that MacMillan would like to change the pricing of digital books based on the new “agency” model.

The new model basically entails that MacMillan would like sell the digital books through retailers, who in turn would charge a normal 30% commission for it. This is really normal. However, standing the way is Amazon and their $9.99 pricing. If MacMillan has its way, the $9.99 cap would give way to a pricing between $5.99 and $14.99. Now where have we seen that price before?

Oh, I know! The Apple iBook Store is supposedly going to sell eBooks for that price. And when Walt Mossberg asked Steve Jobs about it, the great CEO simply said that “they will be the same”. People assumed that the iBook Store prices will be going down but there’s always a reason for these cryptic answers. CEO’s are especially good at this. Part of their job description you know.

So Steve knew the insider info all along of course and he was smiling serenely (or a manic grin, take your pick) as people “oh’d” and “ah’d” about how the iPad is easily undercut by Amazon’s pricing. C’mon people, the iPad might still fail but it won’t because they forgot to check out the prices of the competition, that is simply a very, very silly thing to base product doomsday arguments on.

So MacMillan CEO, John Sargent (who is addressing folks in this announcement), says that this “reverse auction” pricing has a sound base. He also confirmed that Amazon has not responded very openly. They just want to take all MacMillan books off their digital shelves and shove them where no Kindle ever shines (actually any dark area would do. Kindle has no backlight you see).

And well, if that does happen guess how much of a rat’s ass MacMillan gives about it at this point? They were advertised as a partner of Apple’s iPad and I think there’s a connection here somewhere — what with the timing and all. Anyway, at least Sargent says that they will eventually bring the prices down dynamically. So what gives?

It seems like Apple’s biggest rival on the eBooks front has been taking a lot of heat form publishers. When Steve said there were going to stand over Amazon’s shoulders, he really meant try and stomp on them. What’s the best way to ensure publishers are on you side?

Well, give them a very well-made product, tell them 75 million people already know how to use it and give them big fat margins. Also, have the credibility and track record that Apple has. Then, you may trample your competition and hike the price of content. The consumers lose out on money but they might gain greater amount of digital content as a result of the deals. So in the end, it might be a win-win situation.

And who knows, the print industry might not be as uni-focussed as the music industry. They might actually avoid being suicidal and biting the hand that feeds them. But hey, let’s not get our hopes up. We are still human beings. Greed is cardinal in us.

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