domingo, 3 de agosto de 2014

Amazon's an NGO non profit

Isn't it?

Fascinating. Apparently, while...
You might say that publishers can’t be trusted to act in their own interest. [...] collusion resulted in higher prices and lower sales of e-books. So perhaps Amazon feels that it needs to force publishers to settle on $9.99 in most cases because otherwise they’d shoot themselves in the foot.

That could be so.

Indeed, it could. Yet...
contractually enforcing prices is something of an antiquated practice in digital marketplaces. Sure, [...] Apple [...] created a set price for songs. But that was more than a decade ago; since then, digital marketplaces have matured, and we’ve seen a dizzying array of new business models.

Points of order:
  • the publishing bussiness has not matured, digital or stone. It's the Peter Pan of bussinesses.
  • iTunes seems pretty healthy, mature as it is.
  • There are other bussiness models. Some of them trough amazon. Also, crowdfunding and bundles. Can you imagine Hachette's reaction to a bundle editor's proposal?
  • Amazon's not forcing them. Amazon's saying: "above that price, I lose money, so I want an extra". Beware of the myth, amazon's not asking for a set price at 9.99.
  • Contracts can be ammended. Even if things change and the market "matures", you can change your contract, move that 9.99 point up or down. Move your percentage... Whatever. However, thecontract reflects current realities. Amazon has other providers, and knows the price points. Evenif it changes some years later, amazon needs to make bussiness now.
And this is the easy way. Can you imagine the ruckus if amazon had said "we want floating price for books, linked to supply and demand, like a stock exchange"? It would be fun. And yet, some pubs do that with their drinks, and people play. And it would be good for bestsellers, even.

But, simply, Big 5 are not nimble enough, flexible enough. So they're being led by the nose. Because when left free they crash the barn.

Take care.

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