With the iPad, Apple has signaled not only a new way we can access and consume our media, but they’ve also signaled a new way for media producers to monetize their products. Apple has done this before with music, and now they’re trying to do it with, of all things, book publishing.
Remember the day when you bought CDs? Whole “albums” with 10-12 songs on a disc? Hard to remember those days, I know. Apple revolutionized the purchase of music by offering $0.99 individual songs. No more buying a whole CD because you liked a song or two, and then being disappointed in the rest of the project. No more “concept albums” that wove a theme together through 10 different – but complimentary – songs. No, I just cherry-pick my favorites and pay $0.99 per tune.
They’re different, I know, music and books. And I’m not suggesting you’ll be able to grab the first and last chapters of a new novel at the iTunes Store for $0.99 each. No, there’s something else happening in the world of print (be that ink or e-ink).
When Apple announced the iPad, Steve Jobs indicated a new, strategic price plan for downloaded e-books. One with the publisher getting to set the price-point. One which gives great profit margins to the companies who find and produce the best-sellers. A pricing approach that affords the dying publishing world a breath of new life – if they can squeeze more margins out of their business model. Mr. Jobs negotiated with the major companies and – ta da! – found a price point that was appealing to them. And they, in turn, pushed back on Amazon (which has moved a lot of books at $9.99).You can bet that the publishers are feeling some new-found strength, and that there will be other changes coming.
So, look for other pricing deals to be made, and watch the other, existing e-book sellers to roll out a similar pricing tier for e-books. It could signal new life for the publishing world, one which gives them some new revenue potential. That bodes well for them, and for those of us who love books. It could breathe new life into an old-media giant that has been in need of some good news.
And we’ll have Apple to thank for it? Who’d have thunk it?
