The E-book Opportunity
The Pricing Question
How to price e-books in relation to physical books has been a persistent question for several years, with the recent effort by publishers to regain some control over pricing through the agency model as the latest attempt to discover a scheme publishers and retailers are both happy with. Under the agency model, publishers set the price at which books will be sold, with Internet retailers taking a predetermined cut. The arrangement allows publishers to preserve the "tiered" system of selling new books at a higher price point. In return, publishers like Macmillan have agreed to stop delaying the release of e-book versions of new trade hardcovers.