Jeff Campbell
02-01-2010, 07:00 PM
<div class='os_post_top_link'><a href='http://www.tbiresearch.com/amazon-caving-will-mean-short-term-profits-but-could-put-its-e-book-stronghold-at-risk-2010-2?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+typepad/alleyinsider/silicon_alley_insider+(Silicon+Alley+Insider)' target='_blank'>http://www.tbiresearch.com/amazon-c...+Alley+Insider)</a><br /><br /></div><p><em>"Amazon has caved to Macmillan's demands that it raise the prices it charges for Kindle books to as much as $15. What does this mean for Amazon?"</em></p><p><img src="http://images.thoughtsmedia.com/resizer/thumbs/size/600/at/auto/1265043084.usr105634.jpg" style="border: 1px solid #d2d2bb;" /></p><p>Well I think it means they saw the writing on the wall with the iPad looming on the horizon. You may or may not have seen the story, about Amazon.com pulling titles from Macmillan due to a feud over pricing, Macmillan wanting their books priced dynamically, from $5.99USD to $14.99 USD instead of the usual $9.99 USD pricing the Amazon.com Kindle store uses (which they lose money on I'm told). Now Amazon.com has relented and agreed to the request. I think it is like all things, the pricing should reflect what the market will bear. That is the way a free market economy, or as close to a free market economy we can get with all the government intervention, should work. Ultimately the consumer will dictate what prices the books will be sold at, which is the way it should be. What are your thoughts?</p>