Why e-Books Must Cost More

08.02.2010

Big increases in e-book prices seem like a bad deal for consumers. They may be necessary, however, to keep authors and publishers in business as e-books replace paper ones.

The occasion for this discussion is Amazon's capitulation to Macmillan and others over the publishers' demand for greater flexibility in e-book pricing. Amazon has been selling many e-books for $9.99, while Macmillan wanted to add perhaps $5 to the price.

Amazon gave in and other publishers have been following suit.

The reason for the sudden pressure on Amazon

Steve Jobs.

Apple made iBooks deals that give publishers flexibility in pricing e-books for the iPad. This is, of course, a complete turn from Apple's firm demand for standardized, across-the-board iTunes pricing.

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