Amazon losing its grip on book publishers
A third publisher calls for a new pricing model -- one that removes any advantage Amazon had.
Hachette Group is joining in the push to allow publishers to set their own prices for e-books and give sellers a 30% commission. Amazon previously took a 50% commission and chose its own e-book price -- usually in the $9.99 range.
What changed? Apple (AAPL) got into the game with its plans to sell e-books on its upcoming iPad device. Apple proposed the 30% deal to publishers, and said it would allow publishers to set their own prices.
And poof -- Amazon's hold on publishers as the dominant e-book seller began to unravel. The whole thing erupted last weekend when Amazon pulled Macmillan titles from its site (they're still missing) to protest Macmillan's new pricing plans.
But then Amazon backed down, saying it would agree to Macmillan's terms even though it didn't like them. It wasn't long before HarperCollins jumped into the fray. And now with Hachette on board, it looks like we've got a bona fide publisher uprising.
What's the end result here? Consumers will have to pay more, obviously. Publishers are getting what they want. Amazon is the clear loser, as Apple single-handedly leveled the playing field in preparation for its iBook Store debut.
Amazon backs down in e-book fight
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The photo-sharing site only has 10 employees, and it may be up for grabs.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.