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More Great Information on Cut Apple Books:
Scott Turow on why we should fear Amazon (Salon)
Late last week, the Justice Department warned Apple and five of the nation's
largest publishers that it was planning to sue them for price fixing. At issue
is the agency model, a method of wholesaling e-books in which the publisher
sets the retail price and the retailer takes a 30 percent cut. Most print and
many e-books are sold under the traditional wholesale model, in which
publishers sell books at a discounted price, and the retailer can resell them
for whatever price it likes.
The unnamed player in this drama is Amazon, which had been selling e-books at
a loss until two years ago, when the iPad came along and publishers used the
emergence of the new device to pressure the online megaretailer into adopting
the agency model, too. If Amazon wanted to sell e-books from the Big Six (as
the six largest book publishers are called), it could no longer sell those
titles for $9.99.
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