eBook Price War Rages On

And the price war continues between eBooks, retailers and publishers! If the pricing model for eBooks wasn't confusing enough, the release of the iPad has introduced more complications (Apple really needs to stop complicating every industry). Apple wants publishers to set their own eBook prices (agency model), similar to what they do for app developers, but Amazon has previously dealt with publishers under a retail model and capped eBook prices at $9.99. Amazon is pushing back and has halted sales of some eBooks as a result of stalled negotiations. With so many players in this game, and the game just beginning the price war is bound to escalate. Apple is holding strong to their model but will that damage relationships with publishers and online retailers? However the price is settled, this will set the precedent for the "new" publishing industry, which will certainly become more complicated as more eBook capabilities are introduced and as the business model in the publishing industry changes and develops.