eBook pricing is a big issue in the Publishing industry. It is so important that few publishers will discuss on the record.
There is a battle between the publishing companies and the retailers.
There is a battle between the retailers and other retailers.
There is a battle between authors and publishers.
Everyone has an opinion. Self-published authors believe they need to drop prices to $0.99 to be seen. Corporate publishers want the price to remain above $10 to protect margins and pay overhead. Amazon wants prices at $9.99 and below but Apple wants to preserve $12.99 and $14.99. Sony, Nook and Kobo get caught in the middle.
I looked at the prices for the top 20 eBooks at the top five retailers:
- $0.99: Kindle 6; Kobo 3; Apple 1; B&N nook 0; Sony 0.
- $1 -$4.99: B&N nook 5; Kobo 4; Kindle 1; Apple 0; Sony 0.
- $5 -$9.99: B&N nook 11; Sony 11; Apple 7; Kindle 6; Kobo 5.
- $10 – $14.99: Apple 12; Sony 8; Kindle 7; Kobo 7; B&N nook 4.
- Over $15: Kobo 1; Sony 1.
Some observations:
- Kindle has by far the most at $0.99. This is because of self-published authors. They also generally have the lowest prices overall.
- B&N nook has 16 of their 20 titles priced at $9.99 and below. They also try to push down prices.
- Apple has the highest prices with 12 of 20 above $9.99. This is because they are on Agency with everyone.
- Kobo has the most balanced prices across the board. This is in line with their ‘eclectic’ personality.
- Sony also has high prices. They don’t do much promotions and generally follow the others.
Pricing is in flux. Corporate publishers are trying to maintain margin. Individual authors believe the prices should be lower. They are both right, They are both wrong. The ability to move the prices is a big game changer. It will be interesting to see how they move and what happens over the next few years. I believe prices will drop. But it will take a lot of experimenting and discussions for it to happen.
