> The signal that I want to send to Amazon... is that the prices are just too high. They could dramatically increase revenue simply by lowering the prices.
They might be too high for you, on the specific books you want to read. But cutting book prices to maximize book revenues is Amazon's first and oldest game, and I have a hard time believing that they suddenly became clueless about how to play it when they entered (created, really) the ebook market.
Offhand, I can think of two explanations for the price of Amazon ebooks that seem much more likely. I'm not sure if either are true, but I wouldn't be surprised both are:
First, it could be that they have agreements with publishers, who have an interest in keeping the price of Amazon (and Nook) ebooks relatively high in order help keep non-Amazon booksellers in business. They've seen what Wal-Mart does to suppliers, and naturally would want to guard against ending up in that situation.
Second, it could be that Amazon has figured out that they really do maximize Kindle revenues when they don't discount their ebooks very cheaply. That would be the case if Kindle readers generally buy what they want when they want to read it, regardless of a few bucks' difference in the book price. (It's not beyond the pale to think that might be true of people who, almost by definition, are willing to spend $1-200 on an e-reader.) Or, alternatively, they've found that they can price discriminate more effectively through their subscription service.
I think the publishers strong-armed Amazon on this one. For a long time Hatchette would not allow Amazon to list its books unless they supported a price floor, and Amazon refused to comply. Eventually [1], Amazon crumbled, and now the prices are mandated across the board.
Your assessment (protecting non-Amazon booksellers, or Walmartization of the book market) is generous, and probably correct. My less generous assessment is that the publishers would prefer to completely kill off ebooks, lest authors notice that by employing a skilled editor they can just sell their books directly to customers for a fraction of what a book publisher charges, if they can live without the marketing spend and the addictive pull of advances on sales revenues.
They might be too high for you, on the specific books you want to read. But cutting book prices to maximize book revenues is Amazon's first and oldest game, and I have a hard time believing that they suddenly became clueless about how to play it when they entered (created, really) the ebook market.
Offhand, I can think of two explanations for the price of Amazon ebooks that seem much more likely. I'm not sure if either are true, but I wouldn't be surprised both are:
First, it could be that they have agreements with publishers, who have an interest in keeping the price of Amazon (and Nook) ebooks relatively high in order help keep non-Amazon booksellers in business. They've seen what Wal-Mart does to suppliers, and naturally would want to guard against ending up in that situation.
Second, it could be that Amazon has figured out that they really do maximize Kindle revenues when they don't discount their ebooks very cheaply. That would be the case if Kindle readers generally buy what they want when they want to read it, regardless of a few bucks' difference in the book price. (It's not beyond the pale to think that might be true of people who, almost by definition, are willing to spend $1-200 on an e-reader.) Or, alternatively, they've found that they can price discriminate more effectively through their subscription service.