Federal Judge Finds Apple Guilty of Conspiring to Raise E-Book Prices

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chop_slap

Apple has learnt the most important lesson in Corporate history. Fines are nothing & screwing the public through price gouging is the way to proceed. The fines given to Apple mean nothing to them. Haha on you, Apple suckers.

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Hey.That_Dude

Apple disagrees with Cole's decision, saying that the introduction of its iBookstore led to customers having "more choice" and that it "inject[ed] much needed innovation and competition into the market, breaking Amazon's monopolistic grip on the publishing industry."

That's why the kindle app stopped working, right? and every other book app? crApple had a policy that in app purchases weren't allowed, which meant that "competition" they added really was a subtraction of competition and the creation of a monopoly.
Since I don't use crApple for anything, I don't know if that same policy is still making other eBook apps not work. However, that alone is worth a lawsuit under the Sherman act.

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Jox

If the fine is less than $10 Billion, Apple will hardly notice it and will have no compunction about using such tactics again.

From the day that I first discovered the existence of e-books I said that they were overpriced. There is no production cost for an e-book (beyond the salary of the author), there is no warehousing fee, no freight costs, and an infinite inventory. Even Amazon's desired $9.99 is too much. How they ever charged more than $3 for an e-book and, more to the point, how any idiot ever paid more than $3 for an e-book, I will never understand.

-Jox

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jbitzer

Well see it works like this: the writer gets paid, the publisher gets paid and has to recoup the price of editing, publishing, promoting, and producing the book. Then there is server costs, those aren't free. I don't see you people bitching that a bluray disk costs 15 cents so you shouldn't have to pay more than a dollar. I love whiney entitled little kids, they think they know so much.

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Jox

"I love whiney entitled little kids, they think they know so much"

A) Fuck you

B) I bitch about the cost of blu-rays (and the unnecessary bundling with DVD and worthless digital formats) all the time. I just don't do it here because it's seldom relevant.

C) Editing and promoting are fixed costs, regardless of the medium, which can be recouped in volume. The bonus is that if you are making your customers happy, and you really only need to advertise in one place (your own website): SAVINGS!!!

D) I can rent a server for under $30 a month and I'm nobody. Granted, Barnes and Noble (for example) would require a server with more features than my $30 server but guess what? They ALREADY have access to such infrastructure (www.barnesandnoble.com/). There's no new cost here.

E) Don't get mouthy with your head that far up your ass. You'll just end up with bad breath.

-Jox

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jbitzer

I see you're an expert on the publishing business. Yet you don't seem to realize the physical costs of books is a negligible part of the publishing process.

http://michaelhyatt.com/why-do-ebooks-cost-so-much.html

While I think ebook prices should be lower to compensate for the single sale per user, I'm not going to pretend that the costs of production is so negligible.

I guess you should only have to pay a few dollars for a painting, since it's just canvas and pigment.

Moron.

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Hey.That_Dude

You can't replicate a painting bit for bit in about 1 minute.
Therefore your argument, which is based on example, is mute. Sure it might take months to years to write a good novel. It still takes about 10 minutes to make a couple 1000 eBook copies that can be sold for $3.
Try that with paint. Not to mention that Canvas and Paint can be quite expensive depending on what they're made of. After all, the most expensive liquid on the planet is INK, which is a sibling to paint. Seriously, I can just poke holes in your argument all day long. Next time you should try using facts instead.

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jbitzer

Obviously you fail at analogies, also, FYI, it's Moot point, not Mute.

Anyhow, the cost of the ebook is where it is due to recouping all the costs of producing that book. If the ebook is grossly underpriced, and everyone just buys it digital, it will not cover teh production and marketing costs of the book. You aren't arguing that $25-$35 is grossly overpriced for a bundle of papers and some glue, yet, you are arguing the price of digital bits.

I'll use a different medium to appease you. Digital games are sold at the same price as boxed retail. Why aren't people all up in arms about those? It's an Identical situation, a company lays out tons of money to produce something, and then has to recoup the costs and turn a profit to stay in business, If they sold steam copies at 99 cents because obviously they didn't have to ship the box and disc, they'd never recoup the costs, there simply aren't' enough people out there to buy a copy at that price to sustain the business. The difference here is that the ebook is giving you a discount over physical, the games almost never do at launch.

I get that you don't want to pay for things, you guys are making it really clear, but you are either willfully ignorant, or just being argumentative of the hidden costs of production, and are essentially making the argument that the material cost should be the chief factor in pricing of books, which is like saying you should be able to buy a car by the pound.

For the record, I just pirate most of mine off of IRC, so I don't feel all butthurt about having to pay less than $10 every now and then off of Amazon.

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Hey.That_Dude

You're also assuming a lot on how eBook writers advertise their Books and you're even assuming that they release a physical copy. As for Games, I wait for the godly Steam sale or other Sales to buy most of what I want. I'm not big on the "First" mentality. I'm more of the "Got something worth the value" kind of guy (this also happens to be why I build quite a bit of stuff, as the market just doesn't share my taste).
I understand that $3 is a little on the low side. I also feel that $10 is pretty awful. Let's try $5 (for those $2/book worth of advertizing that you assumed was there).

Mute was a hint at what I'd like you to do, as well as being pun. Seriously, read my posts. I have very dry humor.

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jbitzer

We were obviously talking about the price of ebook vs physical. If you only write an ebook and market it yourself, charge what you want.

The whole price concern was that Amazon was devaluing the brand of a book by selling it at 9.99. I think 9.99 for an ebook is the right price for a book at launch, and then it should be below the cost of the paperback. But 9.99 is great since a lot of people wait for the paperback anyway and the publisher will get more than the 6.99 (is that what paperbacks still cost?) from people unwilling to pay $30 for a hardback with no physical costs to them.

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Hey.That_Dude

I think you should reread my post. I never mentioned physical books. I was merely poking holes in your analogy. Your argument on cost of production is valid, for physical copies, but I had issues with your analogy.
Thanks for the information on costs... I don't buy many books and the ones I do are generally limited run or just expensive.

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Scatter

Before ebooks because popular and books were only released in physical form a new release from a known authors generally sold for around $25. The standard percentage that an author would earn was around 10%-15% depending on how many copies were sold. This means that they would earn from $2.50 to $3.75 per copy sold.

If ebooks are sold at retail for $3.00 then that means that authors would only earn from $.30 to $.45 per copy. At what point does an author decide that they're not worth writing any more? I totally agree with the point that there aren't a lot of expenses involved but an author should always be allowed to sell their work for as much or as little as they want IMO.

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Jox

"If ebooks are sold at retail for $3.00 then that means that authors would only earn from $.30 to $.45 per copy"

While that is true, Scatter, I don't think it matters and here's why: An author who sells 20,000 copies of a book at $10 (just to keep the math simple) with a 15% margin will earn $30,000. If that same author can sell 66,666 copies of a book for $3 with a 15% margin, he will again earn $30,000. Harder to accomplish? Perhaps, but there are a number of benefits to this approach:

1) Happier customers

2) Potentially increased sales numbers and, by extension, faster mention on the best-seller list (which frequently results in a further increase in sales)

3) Potentially larger audience for the author which (assuming the author doesn't suck) should translate into increased future sales

The point I'm making is that the money made in book sales is always based on volume. You can increase the volume (particularly on a product for which you have an infinite supply) by reducing the selling price and not lose money while concurrently increasing consumer confidence in your brand and securing future sales. Everyone wins.

Of course, the benefit that the large publishing houses don't want to talk about is the independent authors who may have a smaller audience. Historically, they have been shut out altogether because they are not able to make the sales numbers of your Dan Browns or Stephen Kings. E-book self-publishing allows them to reach an audience that previously went untapped. Visit Amazon's Kindle store and you will find many independent authors selling their books for under $3.

-Jox

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jbitzer

Your "potentially" increased sales argument is bullshit. If X people are interested in a book you aren't going to get 10x people to buy it if you set the price at a x/10.

Using your business model, new authors would have to self publish, because no publisher is going to pick up the risks of underwriting the costs of so many uncertain and low returns. This means authors are now on the hook for distributing, promoting, designing a sales strategy, editing, binding, and printing their books on their own, or you know all the stuff that isn't writing that publishers exist to do.

Man, I wish my job worked on your logic: "If I do 1/3 the work, I'll make 1000 times the money and can retire in a year!!!!!"

Visit the kindle ebook store and read some of those $3 books, there's a reason they're $3.

Publishers exist for the small authors, by time they make it to be a big author, they are tied to the publisher, this is why they like to sign them to multi book deals, they take the risk on the first book hoping to make it big on the sequels. It works the same way with music, digital music isn't sold at $3, and CDs cost WAY less than hardback books, yet somehow I doubt you boycott MP3.

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btdog

I agree - an author should be allowed to charge whatever they want (granted, they charge too much and they won't be selling to many books).

But when you have 5 publishing companies and one retailer joining together to "set" minimum pricing, it's called collusion and price fixing - both illegal - and had nothing to do with the authors.

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Baer

+1 Jox

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severnia

make that +2, thanks for the laugh! "A) Fuck you"