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- Another Publisher Uses iPad as Leverage for Price Hike
Despite Amazon’s knee-jerk banishment and reinstatement of its books following a price increase of its books, publisher Macmillan isn’t the only one looking to introduce a new, more lucrative pricing structure. HarperCollins is also eager for renegotiation, and now, Hachette Book Group has also joined the growing contingent of those looking to charge more for their electronic wares.This is what’s called the new “agency model” of pricing, which allows the company serving the content to take a cut. Apple’s own system calls for a 30 percent take of the revenue on all apps (and now books) sold through its online store. Amazon recently introduced a similar pricing structure for certain books and apps. It looks like major publishers are unwilling to absorb the cost of the seller’s cut, preferring instead to pass it along to consumers.
Hachette CEO David Young, however, in a letter sent out detailing the new pricing plans, claims that book publishers will not make more money using the agency model, claiming the opposite, in fact:
[W]e make less on each e-book sale under the new model; the author will continue to be fairly compensated and our e-book agents will make money on every digital sale. We’re willing to accept lower return for e-book sales as we control the value of our product–books, and content in general. We’re taking the long view on e-book pricing, and this new model helps protect the long term viability of the book marketplace.
Call me skeptical, but I can’t help but feel that these publishers are acting more out of self-interest than anything else. It may be true that they actually make less on every book sold using the agency model for electronic distribution, but it’s probably also true that the books cost much less for them to create than print versions, too. I’d be willing to bet that they end up profiting more on a per copy sold basis in the end. Hachette makes other claims in his letter about how the deal is actually beneficial to consumers, despite the upfront price hike:
There are many advantages to the agency model, for our authors, retailers, consumers, and publishers. It allows Hachette to make pricing decisions that are rational and reflect the value of our authors’ works. In the long run this will enable Hachette to continue to invest in and nurture authors’ careers–from major blockbusters to new voices. Without this investment in our authors, the diversity of books available to consumers will contract, as will the diversity of retailers, and our literary culture will suffer.
It’s good spin, but it’s spin nonetheless. The bottom line, no matter how Hachette, Macmillan, or HarperCollins try to spin it, is that rather than introducing competition that will result in lower prices for book-buying customers, Apple’s iPad has in fact spelled the end of the $9.99 bestseller, for both Kindle and iPad users. Apple had to offer publishers an incentive to come over to its side, but the cost of that bargain is unfortunately one we as the buying public will be paying for.
At least in the short term. A longer view reveals a different picture. Apple needed to gain access to the ebook market, and so was willing to make concessions regarding price. Publishers jumped at the chance to get out from under the tyranny of what amounted to Amazon’s ability to set prices unilaterally. But is it a case of “out of the frying pay, into the fire?”
If Apple’s power play succeeds, Amazon could conceivably be forced to close up shop (though I still don’t think I’ll ever stop reading on my Kindle in favor of the iPad). If and when that happens, Apple will occupy the spot that Amazon once did, and will be able to dictate prices to publishers, much like they did and still continue to do with record labels. It’s a rare case where a monopoly could actually benefit the buying public, but only if you’re willing to pay more than paperback prices in the meantime. I’m not sure I’m willing to do that.
Related GigaOM Pro Research: Evolution of the e-Book Market
Переслать - iTunes Web Previews Now Live for Apps, Too
Apple’s .itms links are either the scourge of the universe, or a very handy little shortcut to getting at iTunes content, depending on who you ask and what mood they happen to be in. My personal policy is always to give people fair warning (warning: this Pastebot link opens iTunes) when I’m linking to the iTunes store, to prevent unexpected program launches when they might not be most convenient.
Recently, Apple introduced preview launch pages for its iTunes musical content. The new pages, which replace the boring “iTunes is launching, please wait” dialog that used to appear, provide basically a snapshot of what you’ll find when that iTunes icon eventually stops bouncing and you’re taken to the relevant page on the iTunes store. And now iPhone apps have received the same treatment. The launch page you now receive when you click App Store links looks pretty much exactly like what you’ll see in iTunes itself. Product description, recommended apps, screenshots and user reviews — it’s all there. Apple also benefits by providing you with the Apple web site’s top navigation bar, so that customers clicking through are now also potentially rerouted towards the company’s other products and offerings.
Is the web preview a good idea? I guess so, especially for Apple’s new customers, who might be confused or put off by links that just open an application on their computer with little or no explanation. And it’s good for Apple, as I’ve just mentioned, since it acts as a kind of light up-selling tool. But as an experienced user who doesn’t appreciate being sold to when I’m already trying to buy something, I see little point in the entire iTunes Preview concept.
Not that it’s completely without merit. In fact, there’s a very simple way to make the whole thing extremely useful and get rid of the annoyance that some feel when inadvertently clicking .itms links. I’m talking about just using iTunes Previews, without the simultaneous opening of iTunes itself. This is one of the few times I will actually advise the implementation of a user interface element that actually adds a step instead of taking one away, but in this case it just makes sense.
The launch pad tells you everything you need to know, since it literally contains all the information available on the item’s iTunes store page. Let us as customers pause there, reflect, perhaps preview songs, etc. and click through to other app previews, and then provide a link to open iTunes. I suspect even just the sense of agency this will allow consumers will help boost actual purchase numbers. And Apple still gets the chance to up sell using the navigation bar. Everybody wins.
Переслать - Atimi — Raising the Standard for iPhone Development
Atimi Software Inc. is a leading iPhone and cross-platform development company with a core strength in developing for the Mac platform and the new generation of smartphones. As a dedicated software services company, Atimi provides advisory and development services and has completed iPhone and software development projects for many of the leading brands in North America, including the New York Times and HBO. By the end of 2009, Atimi had completed more than 25 iPhone applications for its clients, 65% of which received some degree of Apple promotion including via iTunes, TV, print and in-store placement.
Atimi provides confidential, effective, and timely production of smartphone and desktop software. Atimi’s broad range of expertise, proven development processes, and its Orchard rapid development framework for mobile helps clients to reach their target launch dates reliably and efficiently, allowing them to focus on building strong, lasting relationships with their own customers.
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