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In Amazon/Hachette deal, ebook agency pricing is a winner


Laura Hazard Owen's avatarGigaom

In the deal that Amazon and Hachette Book Group finally reached Thursday after months of bitter negotiations, we don’t really know which side “won,” if one side did. But one survivor — perhaps surprisingly — was agency pricing for ebooks, the practice through which the publisher sets an ebook’s price and the retailer takes a commission.

Hachette said in a letter to authors and agents Thursday:

The new agreement delivers considerable benefits. It gives us full responsibility for the consumer prices of our ebooks. This approach, known as the Agency model, protects the value of our authors’ content, while allowing the publisher to change ebook prices dynamically to maximize sales.

That wasn’t a foregone conclusion. In 2010, [company]Amazon[/company] was vehemently opposed to agency pricing, though it ultimately capitulated. Agency pricing was at the heart of the of the Department of Justice’s lawsuit against Apple and book publishers in 2012, in which…

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Updated: Amazon and Hachette finally reach deal; Hachette will set its ebook prices


Laura Hazard Owen's avatarGigaom

Amazon and book publisher Hachette Book Group have finally reached a deal in the negotiations that have been going on since May. For months, Amazon removed pre-orders on Hachette titles, shipped them with delays and would not discount them.

The new agreement, announced in a joint press release Thursday, covers both print and ebooks.

“This is great news for writers,” Hachette CEO Michael Pietsch said in a statement. “The new agreement will benefit Hachette authors for years to come. It gives Hachette enormous marketing capability with one of our most important bookselling partners.”

“We are pleased with this new agreement as it includes specific financial incentives for Hachette to deliver lower prices, which we believe will be a great win for readers and authors alike,” David Naggar, VP of Kindle, said in a statement.

When the new ebook terms take place in early 2015, “Hachette will have responsibility for setting consumer prices of its…

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Glose Is A New Ebook Reader That Turns Reading Into A Social Experience