Amazon Could Allow Higher Prices On Kindle (AMZN, LAZ)
February 02, 2010 10:46 AM
Amazon’s (NASDAQ: AMZN) Kindle has been a favorite with customers due to its easily readable screen, fast wireless downloads and a price for new bestsellers for an average price of just $9.99.
But Amazon may be willing to allow some publishers like Macmillan to have free pricing with an option to keep 70% of sales. This could give publishers greater control and the opportunity to price digital books at will. This is also expected to reduce Amazon’s losses.
But, consumers may not be happy as there are many who flock to the Kindle just to be able to get new titles for as little as $10. “From the consumer's point of view it's obviously not the best decision, but Amazon wants to maintain their position in the e-book market and they've decided to play ball with the publishers," says Colin Sebastian, analyst at Lazard Capital Markets (NYSE: LAZ).
