The Cost of eBooks

Part 1

Steve Jobs thrilled some people and infuriated others when he announced that Apple’s new eBook app will use the agency model for pricing.

Translation: publishers can set the price of their eBooks, and Apple will take a standard 35% discount, or commission.

Amazon was up in arms, because it believes eBooks should be a low-cost alternative to paper books.

Translation: keeping all Kindle prices under $9.95 would help push Amazon’s Kindle—which requires a unique format unusable on any other eBook reader—into the top spot in the eBook-reader market.

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