The $14.99 E-Book: Publishing’s Salvation, Or Just the Last Nail in the Coffin?

Last summer, when the UK National Portrait Gallery and the Wikimedia Foundation got into a kerfuffle over whether the foundation had the right to copy thousands of the gallery’s high-resolution digital images to the Wikimedia site without paying, I wrote that the foundation may have been within its rights, since the original portraits are in the public domain, but that the copying was still unfortunate, since culture isn’t free—somebody has to pay to keep the doors open at the institutions that preserve and curate art. Museums shouldn’t hold digital representations of their art hostage, but it’s not unreasonable for them to ask people to pay something to use it.

Now I’m about to make a contrasting argument. There’s a debate raging over whether publishers should raise e-book prices from their current level, around $10 (for books that are just out in hardcover), to something more like $15. The publishers say that Amazon has been keeping e-book prices unrealistically low, and that they, like art museums, have to charge more to cover their costs. They usually go on to issue vague warnings about how Amazon’s predations are threatening the entire publishing apparatus with extinction. (Struggling industries always need a scapegoat. With the music industry, it was the fans. With publishing, it’s Amazon.)

If I’m in favor of paying museums a reasonable amount for digital art, shouldn’t I also be in favor of paying authors and publishers a reasonable amount for digital books? Of course. The question is what’s reasonable.

Free clearly isn’t a workable price for art or music or books. But neither is $14.99 per title—the price that MacMillan and other publishers reportedly plan to charge now that they’ve prevailed in their recent game of chicken with Amazon. My worry is that in their haste to find ways to pay for their own elephantine and outdated ways of doing business, book publishers will squelch an important new market that could offer the industry’s only long-term salvation.

There’s been a lot of good coverage of this issue recently. Just yesterday, the New York Times‘ technology section ran a fascinating piece surveying the clashing opinions over e-book prices. The most telling quote, in my opinion, came from novelist Douglas Preston, who was attacked by Amazon commenters because his publisher withheld the Kindle version of his latest book, Impact, to bolster hardcover sales. “The sense of entitlement of the American consumer is absolutely astonishing,” Preston told the newspaper. “It’s the Wal-Mart mentality, which in my view is very unhealthy for our country. It’s this notion of not wanting to pay the real price of something.”

David Pakman, a partner at venture firm Venrock, penned a contemptuous rebuke of this line of thinking in a February 3 blog post. Forcing higher prices on consumers on the argument that the “real” cost of a book is the hardcover price, or $14.99, or whatever publishers say it is, is more than just arrogance, Pakman pointed out. It also flies in the face of

Author: Wade Roush

Between 2007 and 2014, I was a staff editor for Xconomy in Boston and San Francisco. Since 2008 I've been writing a weekly opinion/review column called VOX: The Voice of Xperience. (From 2008 to 2013 the column was known as World Wide Wade.) I've been writing about science and technology professionally since 1994. Before joining Xconomy in 2007, I was a staff member at MIT’s Technology Review from 2001 to 2006, serving as senior editor, San Francisco bureau chief, and executive editor of TechnologyReview.com. Before that, I was the Boston bureau reporter for Science, managing editor of supercomputing publications at NASA Ames Research Center, and Web editor at e-book pioneer NuvoMedia. I have a B.A. in the history of science from Harvard College and a PhD in the history and social study of science and technology from MIT. I've published articles in Science, Technology Review, IEEE Spectrum, Encyclopaedia Brittanica, Technology and Culture, Alaska Airlines Magazine, and World Business, and I've been a guest of NPR, CNN, CNBC, NECN, WGBH and the PBS NewsHour. I'm a frequent conference participant and enjoy opportunities to moderate panel discussions and on-stage chats. My personal site: waderoush.com My social media coordinates: Twitter: @wroush Facebook: facebook.com/wade.roush LinkedIn: linkedin.com/in/waderoush Google+ : google.com/+WadeRoush YouTube: youtube.com/wroush1967 Flickr: flickr.com/photos/wroush/ Pinterest: pinterest.com/waderoush/