Random House’s adoption of the agency pricing model is raising eyebrows. Perhaps the move is to get their books into Apple’s iBookstore. (The news couldn’t be more timely, with the iPad 2 launch expected for tomorrow).
Random House spokesman Stuart Applebaum spoke to PC Magazine about the new model: “’For us, the move is an investment in the long-term growth of digital sales, for our retailers and for us,’ Applebaum told PCMag, declining to comment on opportunities in the Apple iBookstore. Random House, the world’s largest publisher, has famously been left out of the Apple iBookstore because it didn’t want the responsibility of determining retail prices. Other ‘big six’ publishers like Hachette, HarperCollins, Simon & Schuster, Macmillian, and Penguin Group migrated to the agency model last year.”
With tablet adoption growth on the rise and the challenges that booksellers like Amazon and Barnes & Noble face within their apps, thanks to the new Apple rules, it makes sense that Random House would want to get their books into the iBookstore.