Amazon and Macmillan settle pricing row; e-titles make a come back on Amazon website

February 7, 2010, By Sanjeev Ramachandran

Amazon and Macmillan have finally called off their pricing dispute after days of wrangling over pricing of books. With the new settlement, books by Macmillan authors are queuing up to be back on sale on Amazon’s Web site. The agreement on a new model is what Amazon has resorted to and this could be seen as Amazon’s climb down, acknowledging the arrival of a rival in the form of the Apple iPad, which could have been a threat to its Kindle franchise and domination of e-books.

Though more details on what all the terms the agreement throws ups is not known, it is being seen by the industry as a beginning of a year of change for publishing. The e-book mart has now a strong rival for Amazon in the form of the Apple device. The agreement terms are sure to have comprised higher prices for e-books, it is believed. So, as soon as the iPad goes on sale this March, Amazon is expected to usher in the new pricing strategy.

Meanwhile, many publishers have breathed a sigh a relief hearing about the settlement and are ready to be back on Amazon. There are also others who are looking to adopt the Apple e-book pricing model for the sale of their e-titles. It seems like the ebook mart is getting set for more headline space.

(Via WSJ)

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