Archive for the ‘Business’ category

E-Books Prices Rise – What Will Consumers Do?

February 11th, 2010

It stands to reason that e-books should be cheaper than regular books, but it seems that the publishing companies disagree. According to the New York Times, the prices of e-books are going to rise. The consumers, obviously, aren’t going to be happy about it:

But now, with e-books scheduled to cost $12.99 to $14.99 under new deals that publishers negotiated with Apple and Amazon, a broader swath of customers may resist the new pricing. The higher prices will go into effect within the next few months.

Read the full article: E-Book Price Increase May Stir Readers’ Passions

War of the e-books: Amazon Removes Macmillan Books

January 30th, 2010

Apple’s iPad was launched a few days ago and the war in the e-book arena quickly escalated.

Amazon has pulled all Macmillan books from its online store. Macmillan is a big publisher and includes publishing houses Henry Holt & Co., science fiction-focused Tor/Forge and the Tiffany of fiction, Farrar, Straus and Giroux.

It seems that Amazon and Macmillan were in disagreement as to the price of e-books sold for the Kindle. Amazon wants a price of $9.99 for Kindle e-books, but the publishers aren’t happy with this demand and would like, of course, to sell their e-books for higher prices.

Amazon could put a lot of pressure on publishers right up until Wednesday, the day of the iPad’s launch. Now the e-book arena has a set of different rules. Sure enough, the publishers didn’t wait. Five publishers were announced to be working with Apple; Macmillan is one of them.

Amazon still has dangerous ammunition, though: all formats of Macmillan books are now unavailable for purchase from the online giant. This can be very bad for the publisher.

It’s hard to predict who will win this battle. After all, there are quite a few online retailers that sell books. If a shopper is really eager to get a certain book, he will find it in a myriad of shops. On the other hand, Amazon has very effective marketing tactics, and buyers may simply be tempted to buy a different book or product. It seems that cooperation is in the interest of both sides and that a compromise will be reached, eventually.

In the mean time, let’s hope that good, fierce competition between different platforms will benefit us, the clients.

Is AdSense Going to Become Even Less Profitable?

January 26th, 2010

Digital Inspiration provides an interesting analysis of  Google’s earning report, with a curious conclusion: Google is reducing share of AdSense publishers (which means you, bloggers).

Check out the comments, too. Interesting discussion.

Operating System Revenue Soars 35% in 2009; Non-Games Software Revenue Declines 7%

January 24th, 2010

Despite the recession and the overall tendency to look for free alternatives, it seems that OS makers had a good year in 2009.

According to a report by NPD group, U.S. retail operating systems boxed software revenue increased 35% in 2009. Other software creators weren’t so successful: overall non-games software revenue has dropped by 7% in 2009 to $2.4 billion.

Operating systems (such as Windows 7 and Snow Leopard) was the only category to post both a revenue and unit increase over 2008.  With new operating system releases from both Microsoft and Apple in the back half of the year sales traffic, volume, and interest in boxed software were at very high levels.  Both OS releases showed record sales.

MS Office Home and Student delivered strong sales volumes during both the back-to-school and holiday periods because of an aggressive price promotion. Apple’s iWork 2009 also saw strong unit volume growth as average prices declined more than 15% on the single-user version.

Just a reminder: if you don’t want to pay for your operating system, there are plenty of free alternatives out there, especially Linux-based.

Is Apple Going to Kick Google Out of the iPhone?

January 21st, 2010

BusinessWeek reports that Apple and Google are having a serious row:

“Amid an accelerating rivalry with Google, Apple is discussing ways to make Bing the default search engine on the iPhone”.

And the reason? It seems that Apple will get more money from Microsoft than it gets from Google. Apple also wants to cut Google off from some of the search data, which as we know, is worth a lot of money, too. It’s also possible that Apple wants to develop its own search engine, and then they won’t need either company.

Read more on why Apple might dump Google