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Summary:

UPDATE: Random House confirmed this morning that it will make its full catalog of 17,000 e-books available on Apple’s iBookstore.

Publishe…

The iBookstore showcases selections on a virtual bookshelf
photo: gdgt

UPDATE: Random House confirmed this morning that it will make its full catalog of 17,000 e-books available on Apple’s iBookstore.

Publisher Random House has announced that it is joining its competitors by adopting the “agency model” for its e-book sales. The new system will allow it to set retail prices of e-books, and give booksellers a cut. That stands in contrast to a system under which the publishing house sells wholesale, which allows the book retailer to set its own price, which might be heavily discounted. (Amazon (NSDQ: AMZN), for example, is believed to have sold many e-books at a loss to pump up Kindle sales).

Many are speculating that it’s no coincidence that this announcement comes right before a major Apple gadget-unveiling; the company is expected to show off the iPad 2 tomorrow. Using the “agency model” is a requirement of being part of Apple’s iBookstore, and making the switch-which all of the other major U.S. publishers have already done-will allow Random House to join up as well.

The company says the change has no effect on sales of physical books. Its full press release is available here [PDF].

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  1. jane vandendriesche Wednesday, March 2, 2011

    You guys suck. Why should I have to pay inflated prices on e-books, because steve jobs thinks he is god. The agency model benefits not one consumer. You people are greedy and I think you should give some thought to what your customers think and feel. i guess as long as you can get away with it and finance large bonuses and vacation get-aways to your CEO’s it will continue.

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