Saturday, June 05, 2010

Publishers set iBookstore prices

04.06.10 | Catherine Neilan in The Bookseller


The agency model moved to the UK last week with the international launch of Apple's iPad.

Despite fears over the model's legality four UK publishers began selling e-books on the iBookstore from day one—Hachette UK, Penguin, HarperCollins and Pan Macmillan—with Simon & Schuster the only publisher missing of those who had previously signed with Apple for its US launch.

Hachette UK said it had signed only after "considerable" legal advice. In a letter to agents, Hachette UK c.e.o. Tim Hely Hutchinson confirmed that it would now be setting the prices for its e-books and planned to move to the agency model in all territories: "We are in touch with other e-book agents, retailers and wholesalers to make similar new agreements with them."

However, retailers spoken to by The Bookseller said they had not yet had discussions over changes to their trading terms with publishers. A spokesperson for Waterstone's said: "There has been no change to our e-book pricing or offer." Kieron Smith, m.d. of The Book Depository, said: "We haven't had any conversations with any publishers about moving e-book pricing to the agency model."

The result means that most bestsellers on the iBookstore, such as 59 Seconds by Richard Wiseman, remain cheaper to buy through Amazon for the Kindle, than they are on the iBookstore.

James Long, Pan Macmillan's editorial director for digital, said it was pricing its frontlist at 30% off r.r.p. and backlist at r.r.p. but that this could change. "That's our strategy as it stands, although as the market develops I'm sure there will be changes."

Discussions may not be as fraught in the UK as they have been in the US, as the ground has already been broken. But a note of caution was provided by David Young, Hachette USA chief executive, who spoke to The Bookseller at last week's BEA, about the transition to the agency model: "The legal departments are under siege, negotiating on every front. It's an immensely busy time. We've had to hire extra lawyers. The three certain things in life are death, tax and lawyers' bills."

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