New York – Publisher Random House has announced that it will
transition to an "agency model" for e-book pricing, whereby it will
now set prices for consumers, and provide a commission to third-party retailers
like Amazon and Apple’s iBookstore, Ars Technica reports.
The wholesale model,
still used for printed works, sees publishing houses sell a quantity of books
to retailers, who could then set their own retail price points.
agency model guarantees a higher margin for retailers than did our previous
sales terms," Random House said.
"We are making this change both as
an investment in the successful digital transition of our existing partners and
in order to give us the opportunity to forge new retail relationships."