Amazon Gets Increasingly Nervous

The consumer who wishes to buy a John Scalzi eBook will discover that more than 90% of his work available for sale for less than $10, just as she will discover that large majority of work of almost all authors is priced below $10. The budget-minded consumer is spoiled for choice in the sub-$10 eBook realm. If Amazon fails to get Hachette to bring down its prices on its new releases, than consumers will still be spoiled for choice in the sub-$10 eBook realm.

What it’s about is two large corporations — Amazon and Hachette — arguing about whose business needs are more important. Hachette wants to continue to price new-release eBooks above $9.99 so it can continue to make what it considers an acceptable amount of profit on new releases and then lower the price point as the new release matures, capturing other audiences as it goes. Amazon wants to nail the price at $9.99 because it’s in the business of selling everything to everyone, and price control is a fine way of locking the consumer into its business ecosystem.