Judge OKs Class-Action eBook Price-Fixing Suit

[blazorthon]

[citation][nom]vertigo_2000[/nom]How does Apple justify a 30% take for doing next to nothing?That's the business I want to be in.[/citation]

It's the same thing that they do with other stuff sold on their mobile store, such as the apps. 30% is a common number for the amount of cash per purchase on an app store based ecosystem that goes to the owner of the app store.

 

[blazorthon]

[citation][nom]vertigo_2000[/nom]How does Apple justify a 30% take for doing next to nothing?That's the business I want to be in.[/citation]

[citation][nom]blazorthon[/nom]It's the same thing that they do with other stuff sold on their mobile store, such as the apps. 30% is a common number for the amount of cash per purchase on an app store based ecosystem that goes to the owner of the app store.[/citation]

Basically, it's the cut that Apple gets for the eBooks to be sold on Apple's app store.

 

[vertigo_2000]

[citation][nom]blazorthon[/nom]Basically, it's the cut that Apple gets for the eBooks to be sold on Apple's app store.[/citation]
So, for every ebook that sells on Apple's iStore, Apple basically receives more money than the actual author of the book? If that's the case, there's something inherently wrong with that system or any system like it.

 

[blazorthon]

[citation][nom]vertigo_2000[/nom]So, for every ebook that sells on Apple's iStore, Apple basically receives more money than the actual author of the book? If that's the case, there's something inherently wrong with that system or any system like it.[/citation]

You're correct, on all parts of your comment here. +1 for that.

 

[mac help]

Yes!, this system is broken. Most 'creatives' get very little money for their efforts. If you're a regular record artist (not Madonna, or Will.i.am, or Lady Gaga, etc.) you're 'royalty' on a per CD basis is about $.25 (yeah, that's right, 25 CENTS per CD sold!). See more here - www dot machelpdesk dot com/courtneylove.html

The middleman, in this case the Publishers, make the bulk of the profits.

 

[DaddyW123]

[citation][nom]Anonymous[/nom]This all depends one which sale model you prefer. The Amazon model is: "Mr. Publisher, you sell Amazon the books at a very discounted price and Amazon will turn around and set the retail price even lower (to even below the suggested retail price) to sell to our customers". Amazon loses money on every e-book they sell. But, they make by selling e-book readers, i.e. Kindles. The Publishers make lower profits, or lose money, and the writers (as always) get squat. Customers pay artificially low prices.The Agency Model is Apple saying to the Publishers: "Mr. Publisher, you sell your books in the iBookStore at whatever price you want. Whatever the price Apple will get a 30% commission on every sale". Publishers make an appropriate profit, writers earn more, Apple makes 30% commission (just like products sold in the iTunes store). Customers pay suggested retail prices.[/citation]
Wow, I'm pretty sure you are VERY wrong here. It's known that Amazon didn't make much money AT ALL on the kindles, if not actually losing money. They were making money on the books people purchased. Same way Sony loses money on the PS3 but makes money on the games. Where Amazon was king, is because they were actually charging a reasonable price for the books.

Now I'm in the corporate IT Datacenter field, and I know that data storage, cloud computing, and setup of it all is a VERY costly project. However, those costs are easily recouped over time by not having to perpetually pay for manufacturing costs of EVERY SINGLE physical book. This is just plain greed! no if's-and's-or-but's about it!

 

[mac help]

So, as I said earlier: "So the problem, as you see it, is NOT with Apple (who, in reality, is just an agent for the Publishers) but with the Publishers who want to charge more for this new and emerging technology."

 

[blazorthon]

[citation][nom]mac help[/nom]So, as I said earlier: "So the problem, as you see it, is NOT with Apple (who, in reality, is just an agent for the Publishers) but with the Publishers who want to charge more for this new and emerging technology."[/citation]

Apple is the one who started this whole mess, so Apple is more at fault than even the publishers. I've already said this.

 

[jimmyjohnz]

Say Amazon wants to sell a book for $9.99. Publisher says no and sells for $14.99 on both the Amazon store and iBook store. Apple gets ~$4.50 out of that $14.99, making $10.49 split between publisher/author. Amazon charges $0.15 per MB and let's assume a 5MB book=$0.75 to Amazon, $14.24 to publisher/author. The publishers make more by selling on Amazon for the now inflated costs, and make less on the iBooks. Apple makes more than Amazon based on higher prices, due to their end price percentage fee. So Apple says it's trying to stop Amazon's monopoly by making more money than them? Ok.

 

[John15v17]

eat pooh Apple...