…our analysts on what it means in real life.
Posts tagged ‘pricing’
In August 2010, the attorney-general’s office in Connecticut, US began investigating pricing of digital content by Amazon and Apple – expressing concern over pricing agreements with publishers and its possible implications on consumers. The attorney-general’s office went on to find identical prices for titles distributed by Amazon, Apple, Borders and Barnes & Noble. So, what’s the deal with e-book pricing?
How do publishers price their digital content?
Margin pressures are a sign of maturity (and commoditization) in any services industry. Publishing outsourcing is no different. Low entry barriers have kept the wannabes pouring in, relentlessly setting up shop, offering ridiculously low prices … to a point where it won’t work any further. However, that hasn’t stopped any more wannabes from joining the game.
While this phenomenon on one side of the industry spectrum has led to rapid commoditization of services, it has also galvanized creativity amongst players on the other side. Innovations in productivity enhancements, process refinement and proprietary product development has become the new mantra for industry leaders, in order to stay in a profitable game. Today, prices have dropped to levels that have pushed struggling players out of business, while the larger players are desperately seeking opportunities to grow.
