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Not All Major Publishers Reportedly On Board With Agency Model for eBook Pricing
However, one major book publisher we spoke with sees no reason to shift to that model right now or anytime in the near future.
The reason is that book publishers make less money from the agency model than they do from the traditional wholesale model (in which Amazon buys a book license at the full wholesale price, and then sells each copy for whatever it wants, often losing money on the sale). The agency model, therefore, also leaves publishers less money to pay authors and agents.
The resistance on the part of at least one major publisher to the agency model could result in differing distribution arrangements with its partners, potentially allowing Amazon to undercut Apple's prices for certain titles. But at the very least, the future of eBook pricing and Amazon's dominant market position remain in flux as Apple prepares to enter the arena as a likely major player in the industry.