This won’t hurt Apple much financially, even if successful, but the legacy of the Agency Pricing move is still damaging Apple and publishers. As I’ve said it was a stupid move that put publishers on the wrong side of consumers which while attractive in the short term was incredibly damaging in the medium to long term:
Apple has received a new damages claim of over $840 million dollars for conspiring with publishing companies to raise the price of ebooks across the entire industry. The claim, filed Friday in New York by an attorney leading a class action lawsuit on behalf of ebooks customers in 33 states, stems from the US Justice Department\’s successful antitrust lawsuit against Apple that took place in the summer of 2013. Using evidence presented during the course of that trial last year, attorney Steve Berman begins by arguing that Apple owes American ebooks customers a bare minimum of $231 million in damages, and probably far more money than that.
I wrote a piece for the Frankfurt Book Fair’s FAQ magazine this quarter about whether or not there was an impact being felt amongst traditional publishers in Ireland from the presence of large tech companies who have made Dublin and Ireland a base of operations in Europe:
The web forms a core part of their businesses in a way that is not yet true of traditional publishers. While they are growing their e-book segments, the latter still do most of their business in paper and print. This crucial difference might be the reason why traditional publishing has not felt much direct impact from the tech firms. Most traditional publishers have little interaction with them and, while the newer and smaller innovative publishers might use their platforms, services and tools, there is not much they can give the tech giants and not much the tech giants can give them.
‘I don’t see that the presence of the large new media and tech companies has had any particular impact on the domestic publishing industry,’ says Ivan O’Brien from The O’Brien Press. ‘They don’t really interact with us, and they inhabit a multi-national space, generally dealing with companies with a whole lot more money than we have!’
An interesting piece by Baldur yet again. In lots of ways touching on the dangers of innovation and change to incumbents:
Building up in-house digital product development is risky and expensive, especially at the start when you have to build up the necessary expertise and tools to do the job and change your organisations implicit value network.
The problem is that changing an organisation’s value network is next to impossible without firing everybody (yourself included) and replacing them with different people. Adding individuals who have different values from those prevalent in your organisation won’t change the value network. It’ll just make your new hires miserable before they quit or get fired. Which means that building a top notch, in-house digital product development team is going to be difficult for most publishers.