3 Publishers Settle e-Book Price Fixing Lawsuit, Terminate "Agency Model" With Apple

[jpeyton]

Not true. It's not that simple.

It will be that simple to your hypothetical simple-minded jury.

 

[Phanuel]

Not true. It's not that simple.

I'm sure Dari loves OPEC and all of the hilarious cell phone carrier data prices and the artificially low data caps that internet providers are placing on everyone.

 

[ControlD]

I agree.

Good. Now tell me in the agency model where there are two sides negotiating the price of goods? There is only one side and that is the publisher. The only thing negotiated in the agency model is how much of a cut the storefront gets to take. That same store has no ability to compete based on price because that price is not negotiable, it is set. What is the incentive in this case to lower prices? Why do it when you have set the price the same for everyone and everywhere that product is sold? How is that free market economics?

 

[Phokus]

Thieving does not pay. Ask Samsung and all those people settling piracy lawsuits for thousands per song...

Samsung is the biggest android phone manufacturer. And android has the biggest android marketshare. Samsung 'thieving' from Apple (from which apple 'thieved' from everyone else) seems to have paid off handsomely for them.

 

[ControlD]

It is also important to note that this case is not a referendum on agency models vs. wholesale models. What got Apple into trouble here is their implementation of the agency model. In order to be able to sell an ebook through Apple's ibookstore you have to agree that you cannot sell the book for less through any other ebook seller. If that isn't price fixing I don't know what to call it.

 

[Dulanic]

It is also important to note that this case is not a referendum on agency models vs. wholesale models. What got Apple into trouble here is their implementation of the agency model. In order to be able to sell an ebook through Apple's ibookstore you have to agree that you cannot sell the book for less through any other ebook seller. If that isn't price fixing I don't know what to call it.

It wasn't just that. Apple met with the publishers to force Apple's competition (Amazon) to sign and agree to a fixed price model. Double no no for Apple and a big fuck you to the consumer.

 

[Dari]

Good. Now tell me in the agency model where there are two sides negotiating the price of goods? There is only one side and that is the publisher. The only thing negotiated in the agency model is how much of a cut the storefront gets to take. That same store has no ability to compete based on price because that price is not negotiable, it is set. What is the incentive in this case to lower prices? Why do it when you have set the price the same for everyone and everywhere that product is sold? How is that free market economics?

They can lower prices to move products. You act as if products do not go on sale in the iTunes store...

 

[Dari]

It is also important to note that this case is not a referendum on agency models vs. wholesale models. What got Apple into trouble here is their implementation of the agency model. In order to be able to sell an ebook through Apple's ibookstore you have to agree that you cannot sell the book for less through any other ebook seller. If that isn't price fixing I don't know what to call it.

And they could have walked away but they did not. Also, everyone benefits from this. The publishers, authors, storefronts, everyone benefits. Consumers benefit from more choice and not having publishers go under because of prohibitive prices...

 

[Skel]

It's going to be hilarious when Apple has like 5% marketshare in smartphones years down the line, i can't wait for your postings then :awe:

If the PC Wars showed anything, the posts will still be on how awesome Apple is. Only they'll be able to do a lot less on the awesomeness

 

[ControlD]

And they could have walked away but they did not. Also, everyone benefits from this. The publishers, authors, storefronts, everyone benefits. Consumers benefit from more choice and not having publishers go under because of prohibitive prices...

Right. I have to keep reminding myself that price fixing and higher priced goods benefit me. I'll repeat it a few times and see if it sinks in. I had an economics professor in college that was a professed communist. He would be so proud.

Why would the publishers have walked away? They get to set higher prices and force every seller to keep those high prices. They would be crazy to turn that down.

 

[zoiks]

I love my E-reader. i do think its insane that the books cost as much as a paperback.

Lately the ebooks at Amazon and Google Play that I've been looking at cost more than the printed version. WTF?

 

[ControlD]

Lately the ebooks at Amazon and Google Play that I've been looking at cost more than the printed version. WTF?

That's the agency model at work. Just keep telling yourself that those prices are good for you and everyone else.

 

[Dari]

Right. I have to keep reminding myself that price fixing and higher priced goods benefit me. I'll repeat it a few times and see if it sinks in. I had an economics professor in college that was a professed communist. He would be so proud.

Why would the publishers have walked away? They get to set higher prices and force every seller to keep those high prices. They would be crazy to turn that down.

In this instance higher prices lead to more choice and happier consumers in the beginning. Amazon tried to artificially lower prices in order to get a competitive advantage on its way to monopoly status. That was wrong. With the agency model, everyone benefits. You get more creativity and more competition, which will eventually lead to lower prices.

 

[Phanuel]

How many e-books a week does Dari purchase from iTunes?

 

[WelshBloke]

In this instance higher prices lead to more choice and happier consumers in the beginning. Amazon tried to artificially lower prices in order to get a competitive advantage on its way to monopoly status. That was wrong.

Wait, so your saying it's wrong for sellers to complete on pricing? Everyone has to charge the same?

 

[ControlD]

In this instance higher prices lead to more choice and happier consumers in the beginning. Amazon tried to artificially lower prices in order to get a competitive advantage on its way to monopoly status. That was wrong. With the agency model, everyone benefits. You get more creativity and more competition, which will eventually lead to lower prices.

Higher prices lead to more choice? Right. Your choice is "Do I want to go spend $14.99 at Apple or do I want to go spend $14.99 at Amazon". Doesn't sound like a great choice to me. I would rather have the choice of "Do I want to spend $14.99 at Apple or do I want to spend $8.99 at Amazon". Or vice-versa. I don't really care who has the lower price, what I care is that the stores are allowed to compete on price. That benefits me as a consumer.

 

[Dari]

Higher prices lead to more choice? Right. Your choice is "Do I want to go spend $14.99 at Apple or do I want to go spend $14.99 at Amazon". Doesn't sound like a great choice to me. I would rather have the choice of "Do I want to spend $14.99 at Apple or do I want to spend $8.99 at Amazon". Or vice-versa. I don't really care who has the lower price, what I care is that the stores are allowed to compete on price. That benefits me as a consumer.

Whatever. Amazon started this war with setting the price bar too low. Apple had no choice but to swing things the other way. IMHO, it would be best if publishers could price things however they want, wherever they want. But, things are fucked because of Amazon...

 

[ChronoReverse]

Right because ebooks should obviously cost more than even hardcover versions of the same book. Looks like obvious shill is obvious.

 

[Raduque]

I wish I could say what I really want to say, but a mod would edit it.

 

[Phokus]

Right because ebooks should obviously cost more than even hardcover versions of the same book. Looks like obvious shill is obvious.

Yeah seriously, ebooks should MAYBE cost half as much as hardcover/softcover books. Dari makes no sense. I guess this is apple logic. Hooray for paying more for absolutely no reason!