Amazon pushes to keep prices competitive on Kindle content |
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Amazon's recent tussle with Macmillan showed that the online retailer may have to accept higher prices on electronic books — matching terms offered by Apple's iPad. But Amazon is scrambling to ensure that its book, newspaper and magazine content for Kindle is priced the same, or below, what consumers can get on the iPad and other reading devices.
The New York Times Bits blog reports:
Since December, Amazon has been pushing publishers to sign a new round of legal agreements that would guarantee that the Kindle price for their content is always the same or lower than the price on other electronic reading devices, such as the iPad or the Sony Reader. The clause, a variation of a legal concept known as “most favored nation,” would guarantee that Amazon’s customers would always get the best price for electronic versions of magazines, newspapers and books.
The report adds that Amazon is offering a better revenue split for Kindle content as part of the negotiations. It will be interesting to see if Amazon can get the pricing terms it wants.
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