All right. We're at a point where publishers have persuaded (read: forced) Amazon to adopt the agency pricing model (allowing ebooks to be priced as high as $12.99 to $14.99). So, we've ended up with some ebooks priced higher than hardcovers (in some cases, as high as $19.99). Readers write one-star reviews in protest (and also, I've noted, added tags like "9.99 boycott" and "overpriced" and so on to the order page). However, as noted here, the joke may be on consumers since these tactics don't seem to have much real effect on sales.
Publishers have argued that producing ebooks with DRM protection is, in fact, a somewhat costly process. This is supposed to justify their ebook pricing.
If that's the case, how do you explain this? I'm happy that Random House is splitting the proceeds from the sale of so many of its ebooks for a good cause. However, in order to have proceeds, I assume you need to make a net profit. And these ebooks are being sold for less than $5.
Am I the only one scratching my head?
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