Peter Kafka

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Apple Lines Up Random House, Its Last iBook Holdout

Apple’s iBookstore, launched in conjunction with the iPad last year, has a big problem: It doesn’t carry titles from Random House, one of the world’s biggest publishers.

But that may be set to change very soon. The publisher, a unit of Germany’s Bertelsmann AG, has agreed to change the way it prices its digital titles, which should clear the way for its arrival onto Steve Jobs’ bookshelves.

Apple and Random House have been at odds over Jobs’ insistence on “agency pricing“, where publishers set the retail price of their titles, and booksellers take a 30 percent cut. (For more background, see these stories). But now the publisher has relented, and is switching pricing systems as of today.

That doesn’t automatically mean that Random House’s 17,000 e-books will show up at Apple’s store. But it sure is nicely timed to tomorrow’s iPad 2 debut.

And assuming the publisher does get there sooner than later, it will be interesting to see if the iPad finally starts to cut into Amazon’s Kindle sales. Lots of folks were expecting to see that last spring, but so far Amazon’s e-book platform seems to have accelerated since the iPad debut, helped in large part by aggressive pricing.


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  • Anonymous

    “…it will be interesting to see if the iPad finally starts to cut into Amazon’s Kindle sales.” 

    Why not ask if the iPad cuts into scientific calculator sales because it has a calculator function?  Both devices aren’t really marketed to the same demographics. 

    The iPad is dependent on its high glare, fast refresh, backlit, pixellated, fingerprint magnet of a screen because it tries to be 1000 things to people.  What can it really do that my iPhone can’t?  The iPad won’t cut into Amazon’s Kindle sales until Apple releases an iBook device that simulates paper as well as the Kindle.

    E-Ink is a totally different beast.  Try taking the iPad and a Kindle outside on a sunny day and get back to me.  To me, finding light sources to illuminate a piece of paper/e-ink is less demanding and more natural in behavior than parking yourself in a specific shady spot to read.

    I don’t read for hours on an iPhone for the same reason I didn’t read on my notebook 10 years ago.  It’s cumbersome and LED/LCD backlit displays are inferior to paper.  A larger display with iPad is not going to make a difference – even if it’s the “cool” thing to get now.  Let’s also not forget the myriad of distractions – email, facebook, games, twitchy fingers that need to touch pinch tap, apps, and the kitchen sink.

    As a hardcore, avid reader, I find it refreshing that the Kindle only tries to be an e-reader first and foremost.  E-Ink, elegant media delivery, intuitive dictionary, and the lack of distractions are great steps in the right direction.

    Apparently, millions of readers agree with me because Amazon Kindle sales and revenue are at an all-time high.

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