Dr Joern Meissner

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Meissner Research Group — Operations Strategy and Pricing Management Blog

E-Book Pricing in the UK

March 4th, 2010 by Joern Meissner

The story of the digital price wars is all about change. As each new technology develops and transitions into part of the mainstream culture, the way the average customer buys their goods is dramatically altered. And the price that customers pay must change right along with it.

According to the recent article ‘Is the price right for e-books?’ by BBC blogger Rory Cellan-Jones, the war over the price for e-book content is poised to become a major issue for the publishing world over the next year in the United Kingdom.

With Amazon, Sony, and Barnes N Noble all developing their own portable reading devices, UK patrons still complain that high prices and lousy access to the books they want have stopped them from purchasing e-books. This has allowed smaller companies like Kobobooks to develop e-readers that allow for easy reading across platforms (portable device, TV, computer, etc.) and easier, faster downloads.

However, it appears most customers care more about the price of the book then how they get it or where they can read it. With Amazon in a power struggle with publishers both in the UK and in America over who determines the price of books, the standard pricing for any book is far from being decided. In fact, just last month Macmillan, one of “Big Six” English language publishers, blocked Amazon from selling any of their products, in a move designated to keep digital book prices high. Macmillan and Amazon may have compromised, but this was surely just one skirmish in a long war.

Perhaps Amazon should focus on how Apple transformed the music world with iTunes. By designating a simple pricing scheme (99 cents per song), Apple was able to give customers the access, speed, and (most importantly) price they wanted. They also won many court cases that gave them the right to determine their own prices. If Amazon and the other e-readers can follow suit, a bottom line price could help drive e-books and e-readers into the hands of every UK citizen.

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