What the Amazon-HarperCollins Deal Means for Ebook Pricing and Publishing
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With the latest deal wrapped, Amazon appears to have reached a truce, of sorts, with the publishing industry. Since last fall, the e-commerce giant has successfully renegotiated contracts with four of the five big publishers-Hachette, HarperCollins, Simon & Schuster, and Macmillan. The terms of all the contracts, per the New York Times, let the publishers decide their own e-book prices, but also gave them financial incentives to keep those prices low. Arrangements that give the publisher complete control over e-book prices are known in the industry as "full agency" models.
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