Producers

The Opportunity Apple Just Created For Publishers

Apple did book big book publishers a favour some time ago when, by giving the big six leverage over Amazon (with the launch of their new ebook platform iBooks), they enabled those large publishers to enforce Agency pricing for ebooks.

That gave the big six the power to set prices and extract a higher share of the revenue from their sales then had been the case for print books. It was a major moment in the development of the ebook market and one that has received a lot of attention and, at least from within the industry, a lot of praise.

Apple’s more recent decision to enforce tough rules on in-App sales of content has been less popular. It has forced Amazon, Google, B&N and Kobo among others in publishing and other creative industries, to change their Apps to disable links to their ebook or content stores. Further it made it impossible for an ebook retailer to sell an ebook through the Apple in-App purchase system without giving 30% to Apple. Nasty eh?

The opportunity this created and that everyone missed , even me (till this weekend when it dawned on me), is for publishers to go direct to consumers and launch their own apps selling ebooks to readers.

Think about it, ebook retailers cannot make money from selling ebooks via Apple’s in-App sales because their margins simply won’t stretch that far. In the case of Agency titles they would be losing money, even on self-published works they might be losing money. However, a publisher, selling direct through their own app, or even a branded app in partnership with a number of other publishers in a given genre, could easily afford the 30% charge and even an administration charge too so long as it was kept low.

Apple has shifted the economics of the App-economy to disintermediate the distributors and empower the content producer. Sure, in doing so they have gained power and revenue potential for themselves, but they have created an opportunity for a savvy publisher who has a brand that readers identify with.

It’s interesting that no-one has written about this yet. I suspect that might be because some of them are working on just that kind of app …

Fine evening here,
Eoin

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