Book Publishers Challenge Amazon
Aided by the upcoming iPad, book publishers are standing up to Amazon's pricing model for e-books. Amazon wants to have a $9.99 price point for e-books, while the publishers want to charge more. Regardless of the price Amazon will still collect 30% of the sale price. Hachette joins Macmillan as the first two publishers to follow the so called “agency model.” Rupert Murdoch of News Corp. stated that the deal worked out with Apple for iPad distribution will allow for more flexible pricing. Steve Jobs has said that publishers can set their own prices, with Apple taking 30% of the price to cover distribution costs.