More on e-book price resistance

Via The Passive Voice, I see the Wall Street Journal reporting on the decline in e-book sales from the major publishers.  This is in the wake of the new contracts they signed with Amazon, which allowed them to continue to set their own prices.

A recent snapshot of e-book prices found that titles in the Kindle bookstore from the five biggest publishers cost, on average, $10.81, while all other 2015 e-books on the site had an average price of $4.95, according to industry researcher Codex Group LLC.

“Since book buyers expect the price of a Kindle e-book to be well under $9, once you get to over $10 consumers start to say, ‘Let me think about that,’” said Codex CEO Peter Hildick-Smith

Hachette cited fewer hot titles and the implementation of its Amazon deal as reasons that e-books fell to 24% of its U.S. net trade sales in the first half of 2015, from 29% a year earlier. Declining e-book sales contributed to a 7.8% drop in revenue in the period.

Then there’s this paragraph:

One high-level publishing executive disputed that the Amazon pacts are contributing to the e-book sales decline. “This is a title-driven business,” he said. “If you have a good book, price isn’t an issue.”

This is, of course, insane.  Price is always an issue.  Maybe you’ll pay more for a new Stephen King book, but there is a price at which you won’t bother to buy it.  And how much money are big publishers leaving on the table by not appropriately pricing their backlist?  The novelist James Salter died recently.  I had heard of him but never read anything by him.  I went on Amazon, and all his ebooks were $9.99 or more; recently one showed up on BookBub for $1.99, so I scooped it up.  As the Passive Guy says:

Since Amazon is the biggest bookstore in the world, one which obsessively collects and analyzes data concerning customer behavior, it is much better qualified to set optimum prices to maximize revenues from the sales of ebooks than a bunch of provincial publishers who have never run any sort of store and have virtually nothing in common with a typical reader.

If you give a kid a stick of dynamite, why would you expect anything other than trouble?

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