Now that Amazon gave in to Macmillan's demands it seems other parties are also trying to renegotiate their contract with Amazon. One of them is News Corp. boss Rupert Murdoch, he hinted that his publishing unit is in line to get a new deal on eBooks from Amazon. This may be bad news for the eBook industry as higher prices may hinder people's appetite to adopt the technology.
We don’t like the Amazon model of selling everything at $9.99. They don’t pay us that. They pay us the full wholesale price of $14 or whatever we charge. We think it really devalues books and it hurts all the retailers of the hard cover books. We are not against [inaudible] books. On the contrary we like them very much indeed. It is low cost to us and so on. But we want some room to maneuver in it. Amazon, sorry Apple in its agreement with us which has not been disclosed in detail does allow for a variety of slightly higher prices.
There will be prices very much less than the printed copies of books but still will not be fixed in a way that Amazon has been doing it. It appears that Amazon is now ready to sit down with us again and renegotiate pricing.