Venture Beat and The New York Times are reporting about a sudden and surprise e-books breakup between publishing powerhouse Macmillan and Amazon.com. What’s more, the tabloids claim that Macmillan has been playing around. The paparazzi captured a shot of Macmillan sneaking into Apple’s iPad for a late night reading. What’s the root cause of the apparent breakup? An age old story … it’s the money honey. Amazon is a cheap date and Macmillan has been suffering in silence for too long. NY Times reporter, Brad Stone, has the sordid details > read
In the video below, listen carefully to the Jan 27 conversation between The Wall Street Journal’s Walt Mossberg and Steve Jobs. At one point Mossberg asks Steve Jobs about the price advantage ($9.99 @ Amazon vs $14.99 @ Apple’s iBooks) Kindle owners enjoy for certain Amazon.com ebook offerings. Jobs tactfully corrects Mossberg.
Mossberg: “[first part is inaudible] why should she buy a book for $14.99 on your device [iPad] when she can buy one for $9.99 at Amazon [inaudible]?”
Steve Jobs: “Well, that won’t be the case.”
Mossberg: “You mean you [iBooks] won’t be $14.99 or they [Amazon] won’t be $9.99?”
Steve Jobs: “The prices will be the same.”
Macmillan leaves Amazon at the Altar … runs off with Apple
As usual, insightful and entertaining… thanks Mr. Butterfield.
Yeah, just got some g2 on this which basically says that the publishers will pick the price and the amazons and apple will present it thus. The push back against high prices will hafta come from the consumer and be conveyed through the sales conduit (apple, amazon et al) to publishers. And there will be push back.