More drama in digital publishing

Last week, when Macmillan announced it would begin setting higher prices for e-books, Amazon reacted by removing access to the publisher’s Kindle editions as well as its printed books. As you probably know by now, it’s Amazon, not publishers, that sets the prices for e-books — and at $9.99, which includes new releases and bestsellers, publishers and authors worry about books being devalued (not to mention pirated).

But on Sunday, as the New York Times reports, Amazon agreed to Macmillan’s terms, though not at all happily: “‘We have expressed our strong disagreement and the seriousness of our disagreement by temporarily ceasing the sale of all Macmillan titles,’ Amazon said [on its web site]. ‘We want you to know that ultimately, however, we will have to capitulate and accept Macmillan’s terms because Macmillan has a monopoly over their own titles, and we will want to offer them to you even at prices we believe are needlessly high for e-books.’”

Apple’s new iPad has set the stage for giving publishers the upper hand again, by allowing them to sell books in its iBookstore at their own prices, and it looks as if this is having a ripple effect. Under Macmillan’s new terms, reports the Times, the publisher will serve as an agent, taking a 30 percent commission and setting e-books at prices between $12.99 to $14.99. The Macmillian arrangement will happen in March, around the time the iPad tablet hits the stores.