A recent report by Business Insider revealed that Amazon has finally signed a multi-year deal with Simon & Schuster. Simon & Schuster, the second major Big Five book distributer it has been arranging with about the cost of ebooks.
Simon & Schuster, the second major Big Five book distributer has been arranging with about the cost of ebooks, a source with information of the circumstances revealed.
The distributer and the tech goliath have marked a multi-year, print and advanced contract. Simon & Schuster made its unique offer and an understanding was arrived at after just a couple of changes by Amazon.
Beginning reports of Simon & Schuster’s arrangements with Amazon began back in July.
“We are very happy with this agreement, as it allows us to grow our business with Simon & Schuster and help their authors reach an ever-wider audience,” an Amazon spokeswoman told Mashable. “Importantly, the agreement specifically creates a financial incentive for Simon & Schuster to deliver lower prices for readers.”
The news were even confirmed by Simon & Schuster spokesman.
The “$9.99” has been considered to be one of the best pricing negotiated by Amazon, which has gained maximum number of thanks for its cheap pricing of e-books. That position has given Amazon a great deal of power to arrange with distributers on terms for circulation.
Points of interest were not quickly accessible about the terms of the arrangement, however a notice from Simon & Schuster CEO Carolyn Reidy to writers demonstrated that it had persuaded Amazon to back up from its hardline of offering ebooks at $9.99.
“Agency Pricing” is a framework in which distributers settle on the cost of a book. Amazon would then get a rate of every deal as the wholesaler.
This could imply that Amazon does not can offer profound rebates on titles at whatever time it wishes.
Amazon has developed to overwhelm the distributed business with around 67% of the digital book market. That has made it an influential drive in the business.
“We are very happy with this agreement as it is economically advantageous for both Simon & Schuster and its authors and maintains the author’s share of income generated from e-book sales,” Reid wrote. “It addresses our mutual concerns about preserving the value of our intellectual property in the marketplace, as it is a return to a version of agency pricing that, with some limited exceptions, gives control of e-book pricing to Simon & Schuster, while providing us the flexibility to deliver great prices for readers.”
Amazon’s hardball arranging strategies joined with its longing to keep control over digital book costs has finished in a standoff with Hachette, which is accepted to be continuous.