Amazon Proves Its Leading Status and Shakes All The Rivals
The Department of Justice has recently announced its intentions to sue the major publishers and also Apple concerning price-fixing charges, moreover, Amazon has also reported certain news and one of them is to significantly push down prices on e-books. The main reason for such an announcement is that these publishers cooperated with Apple and decided to develop a new policy that could provide them with their own retail prices in an absolutely secret way. Besides, it was reported that the consumers had lost approximately $100 million as a result of such significantly higher e-book prices.
Now it is expected that the prices for the major and most popular titles will decrease to nearly $9.99 and this is a weighty reduction as compared with the previous price of $14.99. Such changes have been definitely very favorable for the Internet retailer Amazon as now the nation’s largest bookseller has an opportunity to decide and determine the price for every e-book. The book world is seriously shaking because of the potential consequences and recently provided alterations.
The possible victory for consumers tends to be a rather controversial question, moreover, publishers and booksellers also have serious doubts whether it can become a short-lived or not. The only clear thing is that Amazon already obtains the dominant force in the industry and the bookseller is highly likely to hold all the cards. Amazon is known to control nearly 60 percent of the e-book market now; moreover, it is highly likely to dictate its own terms in the nearest time in case it manages to obtain enough competitive advantage.
The traditional bookstores may face serious difficulties as they have already been under pressure from the Internet for a long time and now there is a danger that there appears a price gap between the physical books and a great number of e-books from Amazon. Such a danger is explained by a fact that the traditional bookstores may lose what is left of their market. Electronic books have been extremely popular for more than a decade already; however, they have taken off only with the introduction of the first Kindle e-reader in 2007 by Amazon.