Publishers, after winning a struggle to raise ebook prices to $13-$15 in preparation for Apple’s iPad, are now defending the move, blaming consumers for ‘unrealistic expectations.’ In a report, publishers say they will still pay fixed costs along with fighting for a piece of a smaller pie.
A number of publishers have sided with Apple’s “agency pricing” model that could increase the retail price for ebooks from $9.99 which Amazon once required to between $13-$15. However, publishers will get just $9.09 of that after Apple takes its 30 percent cut. Then author royalties will cost $2.27 to $3.25, marketing cost about $0.78 and preparing the manuscript another $0.50, according to The New York Times.