Despite settling, HarperCollins and Hachette both denied violating antitrust laws and defended the agency model.
Critics of the agency model viewed it as an attempt to raise e-book prices.
Google Editions will let publishers set the price of their books, he said, and will accept the agency model.
If the agency model took hold, unfettered discounting of e-books would be out.
This suggests Amazon will have to sell Perseus Books using the agency model.
There's already indication that some publishers and authors who use the agency model are dropping prices as they compete for customers.
Comparable NOOK sales reflect the actual selling price for digital books sold under the agency model rather than solely the commission received.
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Just as in old Hollywood, the agency model is not economically sustainable.
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Under the agency model, publishers set the prices and retailers don't discount.
The agency model for plane tickets is very low-margin and is getting squeezed further by mergers in the airline business (Northwest-Delta, United- Continental, Southwest-AirTran).
One idea floated by publishers to settle the case is to preserve the agency model but allow some discounts by booksellers, according to the people familiar with the matter.
Apple agreed to the agency model for just one year, and, as publishers are acutely aware, Jobs has a history, with music and television companies, of fighting to reduce prices.
While the agency model has given CMOs extensive experience in working with external partners, a much broader, more complex ecosystem is now required that demands much more than a basic client-vendor relationship.
In Seattle, Sargent met with Russ Grandinetti, the vice-president in charge of Kindle Content, and told him that if Amazon would not accept the agency model Macmillan would restrict the publication of its e-books.
The days (and the auditoriums) are packed with discussion of digital, mobile, brand integration and the agency model of the future topics we have been discussing and debating over and over for years.
Publishers have argued privately that the agency model helped save the book industry from suffering the same fate as the music recording industry did at the hands of Apple and preserved competition by allowing several booksellers to thrive.
For authors and publishers, the agency model provides them with greater control over the timing of their promotions and higher per-unit earnings of 70% of the list price as opposed to 50% for the conventional wholesale pricing model.
" Describing Apple's strategy for negotiating with the publishers, Mr. Jobs said, "We'll go to the agency model, where you set the price, and we get our 30%, and yes, the customer pays a little more, but that's what you want anyway.
"We told the publishers, 'We'll go to the agency model, where you set the price, and we get our 30%, and yes, the customer pays a little more, but that's what you want anyway, '" Mr. Jobs was quoted as saying by his biographer, Walter Isaacson.
The former Apple CEO "conceded the price-fixing conspiracy when, the day after publicly announcing Apple's forthcoming iBookstore, he explained to his authorized biographer that Apple had told the publishers, 'We'll go to the agency model, where you set the price, and we get our 30 percent, and yes, the customer pays a little more, but that's what you want anyway, '" the government says in court papers.
Most important, the agency pricing model levels the playing field for e-book retailers.
In the new arrangement, called the "agency model, " the publisher set the retail price and the bookstore agreed per contract not to discount.
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The old agency model was constructed around broadcasting a brand message to the masses.
Though Expedia expects the merchant model to continue having a significant impact on its business, we estimate the proportion of agency model to increase in the future.
The next time you see an overpriced e-book, blame the publisher but not the agency pricing model.
As we know the case is about the move from the wholesale model to the agency one for the selling of e-books.
The traditional advertising agency model is under assault as media fragments, and digital continues to expand audiences.
The shift to agency model will have a negative impact on working capital as well, but Expedia feels that it has a strong balance sheet to support the same.
Mr. Obama would make more progress against recession if he steered the TARP back to the purpose that Paul Volcker and Eugene Ludwig first proposed on these pages -- as a resolution agency on the model of the Resolution Trust Corp. of the 1990s.
Thus, the broader acceptance of this scheme is likely to drive back growth in agency model and reduce the share of merchant model revenue.
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