Price Watch: E-Books on the Rise

With the emergence of Apple’s iPad, Amazon has taken another look at their pricing structure for their own device, the Kindle. Amazon was paying $12 to $13 per digital book and selling it at the $9.99 price point. They were obviously looking to capture most of the e-book device market share but we could not expect them to take a loss forever. The iPad’s pricing structure has forced Amazon to reconsider quickly. Preemptively, as of January 20, Amazon has switched to a commissioned based system that sees publishers receiving 70% of book revenue.