On vacation and just catching up, but a few thoughts having the misfortune to deal with anti-trust a few times in my life.
There are some products where the COGS is not so obvious. Books are one. How do you value the labor hours of a Hemingway?
Amazon isn't a crusading white knight in this, they are selling eBooks below cost, which, if they were another country would be called dumping. To me, the interests of the consumer are more aligned with the interests of the producers than the interests of the retailer. Great books are art, of incalculable value; not produce to be sold by the pound.
Apple seems to be a side show here. I dont think it's anti competitive for Apple to suggest an agency model to the publishers. Demand an agency model? I don't think they had the power. I think the publishers talked to Apple and said "here's our problem" and Apple said well "here's a solution".
Amazon has close to monopoly power in the ebook business, selling mostly below cost. Looking to anti competitive behavior, I would look to Amazon first.
The publishers really do need to step up. All book sales to retailers are "two way", the retailer is allowed to return anything that doesn't sell. Huge cost to the publisher with physical books that they then have to dump. It costs a lot to print, bind and ship a physical book. They have Such lower costs for eBooks they need to face some facts and adjust their model.
And, come on, when a book comes out in paperback for $5.99 or whatever, the ebook buyer still had to pay the "hardcover price". Stupid. |
