What about the publishers?
tokyogai
3/13/2012 9:14:44 AM
OK, so maybe Apple overstepped a bit here, but what about the publishers? Why are they charging more for eBooks? They are MUCH cheaper to produce and the margins have to be sky high- no inventory to deal with, no returns, very low production costs, etc. How have they all managed to push prices up when costs are much lower? It is not just one of them, but all of them-- looks like maybe there is something for justice to look at here as well.
Re: What about the publishers?
Phoenix
3/13/2012 9:33:18 AM
I agree tokyogai. There is something really fishy going on. We are paying for the convenience but the profit margin must be really high when compared to the printed books. I hope the DOJ looks into it.
Really? Big companies conspire to set prices? Shocking, isn't it?
Re: What about the publishers?
Value Hiker
3/13/2012 12:08:07 PM
Apple's deal with publishers (not one of them, but the association of publishers) is a typical case of price fixing. It is not only unethnical, but also illegal. I am glad that DOJ finally decided to do something right.
It is common sense that ebook shall cost much less comparing to phsical books, just like digital music costs much less than CD. But it does not happen. The reason is the same why diamond costs so much while we all know it is just a piece of stone.
De Beers once controlled the world's 90% raw diamonds supply through price-fixing with smaller manufacturers and vendors. During WWII, De Beers tried to cut a deal with US government. It promised to provide the industrial diamond cheaply in return for immunity from anti-trust prosecution after the war. DOJ rejected the deal and suited the De Beers, but De Beers got away because it has no presence on US soil.
Apple did the right thing to force the media company selling music at right price. But Steve Jobs decided to entice the e-book pulishers joining the Apple camp by providing the price-fixing. The deal not only hurt the Amazon, but also the consumers in general.
Re: What about the publishers?
TelecomFreq
3/13/2012 3:42:13 PM
Though I agree this is a big problem and I am also glad the DOJ is doing something about it, I can not see Apple getting any more then a slap on the wrist, Thats how these deals always shake down.
Re: What about the publishers?
Dex
3/13/2012 3:42:38 PM
I agree, @Value Hiker. Apple thinks a lot less differently than it wants us to believe.
Re: What about the publishers?
cat tail
3/13/2012 3:57:55 PM
You're right, TelecomFreq. There's never any major penalties--just some nomimal fine.
Re: What about the publishers?
TelecomFreq
3/13/2012 4:06:19 PM
When a company has as much in the bank as Apple, it will take more than a little fine to change the way they do business.
Cost
AskAsa
3/13/2012 10:56:32 PM
I'm sure Apple and many of the others view these penalties and legal costs as part of the price of doing business.
I think its kind of upsetting when penalties do not change behavior they are just part of business. Why have laws and policy in place if they dont mean anything...
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