Amazon losing its grip on book publishers

A third publisher calls for a new pricing model -- one that removes any advantage Amazon had.

By Kim Peterson Feb 5, 2010 1:50PM
Credit: (© Peter Zschunke/AP)A third major publisher has stood up to Amazon (AMZN), sinking another nail into the coffin of the $9.99 e-book.

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.

Related reading:

Amazon backs down in e-book fight


0Comments

DATA PROVIDERS

Copyright © 2014 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.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

114
114 rated 1
280
280 rated 2
473
473 rated 3
639
639 rated 4
637
637 rated 5
662
662 rated 6
640
640 rated 7
498
498 rated 8
287
287 rated 9
121
121 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
COPCONOCOPHILLIPS9
TAT&T Inc9
VZVERIZON COMMUNICATIONS9
KOGKODIAK OIL & GAS Corp9
CVXCHEVRON CORPORATION8
More

VIDEO ON MSN MONEY

ABOUT

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.