Sony Lowers Ebook Prices to $9.99
By Anna Johnson on August 11th, 2009In a move that may pave the way for a new, lower price for most ebooks, Sony plans to drop the prices of new and best-selling books in its ebook store from $11.99 to $9.99.
Sony is also releasing two new ebook reading devices: the Reader Pocket Edition and Reader Touch Edition. Retailing for $199 and $299 respectively, these devices will go on sale at the end of August, and replace earlier and more expensive versions of the Sony Reader, the 505 and 700, which cost $269 and $399.
Sales of Sony’s reading devices have trailed those of Amazon’s Kindle. The new price points, combined with the availability of the Sony devices in retail outlets such as Wal-Mart and Best Buy, may, however, turn the tide. At the very least, the move is evidence of Sony’s eagerness to mount a serious competitive challenge to Amazon.
Ebook publishers are apparently not so pleased with Sony’s move. While they will still get their usual commission on the sale of each ebook, the reduction in price will reduce the overall amount they make per sale. Some publishers may, therefore, respond to this – and/or other pressures for lower ebook prices – by postponing the release of the digital versions of their bestselling books in order to preserve margins (i.e. by delaying the availability of the ebooks).
That may just be publishers cutting off their nose to spite their face, though. Instead of punishing people for wanting ebooks, why not embrace the trend, and change their business models to profitably accommodate the demand for ebooks? Not easy to do, but something they may be forced to do if they take a defensive, rather than pro-active, approach.
