Friday, March 9, 2012
Apple and Big Six Under Investigation for EBook Price Fixing
As if we didn't need MORE evidence that our indie revolution was a necessity.
The Big Six and Apple are under investigation for price fixing ebooks. They were scared of the indie author's ability to sell their books cheaply, as well as the natural tendency for a digital product to be cheaper than a physical (have to store on a shelf and ship) product and colluded together to raise the prices of their products.
There are laws against this, just ask the gas companies.
Why buy that physical book for $19.99 if you can buy it on the ereader for $9.99?
If the Big Six are willing to take on Amazon for offering discounted books, what do you think stops them from forcing Amazon to push down indie ebooks that range in price from $.99 to $4.99 and still undercut the prices for their DISCOUNTED books by 50%?
This investigation is ranging from the European Commission to the U.S. Department of Justice.
While I recognize the right of an author to sell their book for what they deem to be a fair price, it is important for an author to negotiate for higher royalties on ebook sales since there is NO overhead on the digital product. How many indie authors are able to publish their novels for near to nothing? Even if it costs several thousand dollars to edit and cover a book, the costs on overhead simply are not their with an ecopy.
If they are scared about their prices coming down from 14.99 just because of discounts, imagine how scared they are of indie competition coming in at $.99?
Make no mistake...you ARE in the cross-hairs.
Vive La Revolution!