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04-13-2012, 01:22 AM #1
Amazon Plans to Lower Ebook Prices, But Does It Need To?In the wake of the Department of Justice lawsuit against Apple and book publishers over ebook pricing, Amazon is in a renewed position of strength. Emboldened by Wednesday’s news, the online retailer has already made plans to lower ebook prices.
In an emailed statement, Amazon said “[The settlement] is a big win for Kindle owners. We look forward to being allowed to lower prices on more Kindle books.”
Amazon used to sell most ebooks — including major titles and best-sellers — for $9.99. However, after five major publishers made an agreement with Apple on ebook pricing that specified other platforms couldn’t undersell Apple, Amazon was forced to raise prices, and many books began selling for $14.99.
Now it looks like $9.99 could become the norm again. At that price, it’s widely known that Amazon is selling ebooks at a loss in a broad strategy to cement its Kindle ereaders and tablets as the dominant ereading platform.
Does it need to keep doing that, though? Amazon’s market share among ereaders is already dominant. Numbers from last fall show it almost doubling Barnes & Noble’s Nook platform, and that was before the release of the new Kindles during the holiday season. In the ebook market, Amazon holds a commanding lead with a 60% share....being a human...