I could have told you this would happen.
Remember the various disputes over eBook pricing last year between Amazon and some of the Big 5 publishers? They ended when all reached new deals with the company and kept the right to set their own eBook prices. Now they’re seeing what happens when prices are set at ridiculous price points.
The average eBook prices for the publishers involved in the recent contract negotiations is over $10. With most titles selling for nearly as much as the hardcover. Think about that. Why buy an eBook for $14.99 when you can buy the hardcover for $15.30. Those are the kinds of things happening with most major releases.
Now eBook sales are way down. They’ve been fairly stagnant in recent years, but stagnant is obviously better than a drop. I still think publishers are stealing your money when they make you pay $14.99 for what amounts to a tiny file on an eReader. With what I know about the production costs and royalty rates for authors today, I’ll never be convinced that a Kindle eBook is worth $14.99. Heck, it’s hard to convince me that a hardcover is even worth that.
Do you think the publishers are shooting themselves in the foot by continuing to price their eBooks as high as they are? I think these executives have some time frame in mind that they’re willing to go through. And if the sales continue to fall, then I’m certain that lower prices will make their way back into the Kindle store.
On this day in 2014 I published Here They Come.