Why should I provide my email address?

Start saving money today with our FREE daily newsletter packed with the best FREE and bargain Kindle book deals. We will never share your email address!
Sign Up Now!

Are Kindle Customers and Agency Model Publishers Approaching a Compromise at the $12.99 Price Point?

By Stephen Windwalker, Editor of Kindle Nation Daily – Originally posted 6.15.2010

Have Kindle store customers and agency model publishers arrived at an unspoken compromise that could make $12.99 a viable new price point for bestsellers and new releases in the Kindle Store?

Although I want to resist drawing firm conclusions until we’ve seen more of the effects of coming changes in the Kindle royalty structure, there are some interesting patterns in our latest breakdown of prices in the Kindle Store and on its paid bestseller list. It’s deadline day for the weekly Kindle Nation email newsletter digest, so I’m going to try to keep the commentary brief, but here’s what I am seeing:

  • There have been slight increases during the past three weeks in the overall percentage of titles in all but one ($5 to 9.98) of the price ranges that we track from $.01 up to $9.99.
  • There have been slight decreases during the past three weeks in the overall percentage of titles in the price ranges from $10 to $12.99, $13 to $14.99, and $15 and up.
  • There are increasing signs that suggest authors and publishers may be able to make promotional prices in the $0.79 to $2.99 range work as “the new free” in the Kindle Store, now that such prices tend to stand out in the overall terrain of the relatively new “paid” bestseller list. 13 of the top 100 paid bestsellers are $2.99 or less, compared with just 7 on May 22.

But most significantly, here’s the buried lead: At the other end of the price spectrum, the number of titles priced between $10 and $12.99 among the Kindle Store’s top 100 paid bestsellers has jumped from 17 to 26 since May 22. Despite a strong current of commentary against $10-and-up pricing on this and other blogs and in various online forums, it is beginning to appear that many Kindle store customers are willing to pay up to $12.99 for newly released titles.

  • Nine of those 26 titles are among the top 23 bestsellers, and the prices for all 26 have been set directly by agency model publishers. 
  • It may be that trying to organize the world’s most motivated readers into boycotting books priced over $9.99 is a lot like herding cats, and there should be no surprise in that. On the other hand, readers continue to stay away from most of the 14,105 titles whose Kindle prices range from $13 to $14.99. The number of those titles appearing in the top paid 100 fell from 5 to 4 since May 22, and none of those are among the top 30.
  • Of all 30 titles priced over $9.99 among the Kindle Store’s top 100 paid bestsellers, all are agency model titles save one. The one exception is Aimee Bender’s The Particular Sadness of Lemon Cake: A Novel, a Doubleday/Random House release currently priced by Amazon at $13.65 in the Kindle Store, while Amazon has discounted the hardcover from $25.95 to $14.27.

It’s too early to say with any certainty that Kindle owners have accepted a $12.99 price point, but my anecdotal reading of reader comments around the web suggests to me that some readers might be willing to pay for an occasional bestseller at $9.99 to $12.99 — still a measurable savings compared to most discounted hardcover prices — if they could be assured that publishers would back off the $14.99 price point.

Over time, many of us believe that the default new release price will return to the $9.99 level, and it is clear if you look at the books that get the prime real estate in the Kindle Store that Amazon remains committed to that price point. It’s also good to see that publishers themselves are getting the benefit of sound thinking from advisors like Mike Shatzkin, an industry consultant who wrote on his idea Logical blog this weekend:

I posit that the price of content must go down because of the laws of supply and demand. Even though digital delivery does actually increase “demand” (because people can consume more media if they have the means to do so always at hand), it increases supply much more. You used to need a publisher to spend some money and to commit an organization to get content into “supply”. Now you just need an internet connection. So I see downward pressure on the selling price of content going far into the future. This does not mean that eventually all content will be free, but it does mean that everybody will consume more and more free content and, therefore, be generally less willing to pay money for content to augment what is free.

I’ve been a bit critical of Mike and some of his colleagues in the past, probably even unfairly in some instances, when I have felt they were telling publishers what they wanted to hear rather than what they needed to hear. But it is clear from this post that he is not guilty of that kind of pandering.

Even Steve Jobs (and Apple), who can be held largely responsible for the increases in ebook prices this year, has been getting that other side of his mouth working lately with “price aggressively and go for volume” remarks that could support an inference that Apple may ultimately move to push ebook prices lower. Jobs may be the target of a price-fixing investigation, but he’s not in any trouble with iBooks customers. Many of them apparently wear an “i Paid” badge of honor judging from a quick analysis of the iBooks “Top Charts” list, where 58 of the top 100 paid bestsellers are priced over $10.

Here’s a price breakdown of the 609,975 book titles in the Kindle Store as of 5 p.m. EDT on June 14, 2010:

Here’s where we stood with the 587,104 book titles in the Kindle Store as of 5 p.m. EDT on May 22, 2010:

  • 20,584 Kindle Books Priced “Free” (3.51%)
  • 4,830 Titles Priced from a Penny to 98 Cents (0.82%)
  • 55,901 Kindle Books Priced at 99 Cents (9.52%)
  • 76,054 Kindle Books Priced from $1 to $2.99 (12.95%)
  • 109,706 Kindle Books Priced from $3 to $4.99 (18.69%)
  • 151,509 Titles Priced from $5 to $9.98 (25.81%)
  • 56,059 Titles Priced at $9.99 (9.55%)
  • 7,700 Titles Priced from $10 to $12.99 (1.31%)
  • 13,803 Titles Priced from $13 to $14.99 (2.35%)
  • 90,958 Titles Priced at $15 and Up (15.49%)

Here’s where we stood with the 511,759 book titles in the Kindle Store as of 9 a.m. EDT on May 7, 2010:

  • 20,601 Kindle Books Priced “Free” (4.03%)
  • 4,857 Titles Priced from a Penny to 98 Cents (0.94%)
  • 53,936 Kindle Books Priced at 99 Cents (10.54%)
  • 73,987 Kindle Books Priced from $1 to $2.99 (14.46%)
  • 101,014 Kindle Books Priced from $3 to $4.99 (19.74%)
  • 91,871 Titles Priced from $5 to $9.98 (17.95%)
  • 54,342 Titles Priced at $9.99 (10.62%)
  • 7,434 Titles Priced from $10 to $12.99 (1.45%)
  • 13,489 Titles Priced from $13 to $14.99 (2.64%)
  • 90,257 Titles Priced at $15 and Up (17.64%)

Here’s where we stood with the 487,715 book titles in the Kindle Store as of 9 a.m. EDT on April 7, 2010:

  • 20,620 Kindle Books Priced “Free” (4.23%)
  • 4,709 Titles Priced from a Penny to 98 Cents (0.97%)
  • 46,360 Kindle Books Priced at 99 Cents (9.51%)
  • 69,846 Kindle Books Priced from $1 to $2.99 (14.32%)
  • 94,891 Kindle Books Priced from $3 to $4.99 (19.46%)
  • 86,924 Titles Priced from $5 to $9.98 (17.82%)
  • 53,705 Titles Priced at $9.99 (11.01%)
  • 7,537 Titles Priced from $10 to $12.99 (1.51%)
  • 13,124 Titles Priced from $13 to $14.99 (2.69%)
  • 90,011 Titles Priced at $15 and Up (18.46%)

Here’s where we stood with the 480,238 book titles in the Kindle Store on April 1:

  • 20,620 Kindle Books Priced “Free” (4.29%)
  • 4,706 Titles Priced from a Penny to 98 Cents (0.98%)
  • 43,993 Kindle Books Priced at 99 Cents (9.16%)
  • 68,807 Kindle Books Priced from $1 to $2.99 (14.33%)
  • 93,706 Kindle Books Priced from $3 to $4.99 (19.51%)
  • 85,612 Titles Priced from $5 to $9.98 (17.83%)
  • 53,124 Titles Priced at $9.99 (11.06%)
  • 5,952 Titles Priced from $10 to $12.99 (1.24%)
  • 14,158 Titles Priced from $13 to $14.99 (2.95%)
  • 89,525 Titles Priced at $15 and Up (18.64%)

Here’s where we stood with about 463,000 Kindle Store titles on March 10:

  • 20,125 Kindle Books Priced “Free” (4.34%)
  • 2,588 Titles Priced from a Penny to 98 Cents (0.56%)
  • 39,095 Kindle Books Priced at 99 Cents (8.44%)
  • 64,105 Kindle Books Priced from $1 to $2.99 (13.84%)
  • 90,580 Kindle Books Priced from $3 to $4.99 (19.55%)
  • 84,055 Titles Priced from $5 to $9.98 (18.15%)
  • 53,697 Titles Priced at $9.99 (11.56%)
  • 5,793 Titles Priced from $10 to $12.99 (1.25%)
  • 13,731 Titles Priced from $13 to $14.99 (2.96%)
  • 89,448 Titles Priced at $15 and Up (19.31%)

And here’s where we stood with about 447,000 Kindle Store titles on February 25:

  • 19,795 Kindle Books Priced “Free” (4.42%) 
  • 3,023 Titles Priced from a Penny to 98 Cents (0.67%) 
  • 36,370 Kindle Books Priced at 99 Cents (8.12%) 
  • 62,275 Kindle Books Priced from $1 to $2.99 (13.9%) 
  • 87,722 Kindle Books Priced from $3 to $4.99 (19.58%) 
  • 81,230 Titles Priced from $5 to $9.98 (18.13%) 
  • 55,269 Titles Priced at $9.99 (12.34%) 
  • 5,139 Titles Priced from $10 to $12.99 (1.15%) 
  • 9,331 Titles Priced from $13 to $14.99 (2.08%) 
  • 87,771 Titles Priced at $15 and Up (19.59%)

Kindle Nation Daily Free Book Alert for Tuesday, June 15: L. Ron Hubbard, Moira Rogers, Dozens More

 The free promotional titles just keep on coming in the Kindle Store. Today we have L. Ron Hubbard’s The Last Drop and Moira Rogers’ Cry Sanctuary, the leadoff novel in her Red Rock Pass series.

Cry Sanctuary: Book 1 of Red Rock Pass series

Two mid-day additions to our updated list of dozens of free Kindle promotional titles:

Violet Dawn
A new daybook from inspirational author Zig Ziglar and a popular religious novel start the week’s free Kindle Store promotional listings:

by Dwight “Ike” Reighard 5.0 out of 5 stars (2 customer reviews)
(Love Comes Softly Series, Book 1) by Janette Oke 4.8 out of 5 stars (104 customer reviews) 

Also, if you are a fan of Kindle Store bargains, don’t miss this weekend post:

Kindle Nation Daily Bargain Book Alert: 15 Great Reads from 79 Cents to $1.99!

Here’s the rest of our updated list of free promotional titles in the Kindle Store as of June 15:

Amazon Now Allows Manual Updating of Kindle Software as Version 2.5 Roll-Out Nears Completion

With the long-awaited roll-out of the Kindle version 2.5 software update nearly complete, Amazon has now flipped the switch to allow Kindle owners to download the update from its Kindle support pages and apply it to their Kindles manually.

  • This software update is for the Kindle 2 and Kindle DX only; aside from a hint or two that some enhancements may be coming for the Kindle 1, Amazon hasn’t shared any substantive information on updates for Kindle 1 owners.
  • If your Kindle has been updated to the first or second beta of the new software update, you should see “Version: Kindle 2.5” or “Version: Kindle 2.5.2” in the lower right corner of the display when you  press “Menu” from the Home screen and select “Settings.” If your Kindle hasn’t been updated yet, check to see that your wireless is turned on, since the roll-out is being done automatically over the Whispernet, and sit tight.

Here are the five posts that drill down on specific update elements:

Another important enhancement that really doesn’t require an explanatory post is the expansion of font sizes. Just press the “Aa” font key to the right of your Kindle’s space bar to reveal a wider array of font sizes.

In addition, the update will include some fixes of “known issues,” such as the glitch that has sometimes kept blogs like Kindle Nation Daily from updating automatically for Kindle edition subscribers.

Here’s the material from Amazon’s manual update page:

Applying Kindle Software Updates Manually

If you have a software version prior to 2.5, you can download the latest Kindle software update to your computer and transfer it to your Kindle via USB. To determine your Kindle software version, go to the Settings screen and view the version information at the bottom of the screen:

Image of version information (Kindle)
Here’s how to download version 2.5:

  1. Determine which type of Kindle you have: You can confirm which Kindle you own by looking at the certification symbols or first 4 digits of the serial number located on the back of your Kindle and comparing it to the images below.
    Note: If your Kindle is in a cover, please follow the instructions that came with the cover to ensure you carefully remove your Kindle before attempting to check for the serial number on the back.
  2. Download Your Software: Visit the appropriate link below to download the Kindle 2.5 software update file directly to your computer:
Image of the back of Kindle (U.S. Wireless)

Kindle (U.S. Wireless)

Serial no. prefix B002
Download: Kindle (U.S. Wireless)

Image of the back of Kindle DX (U.S. Wireless)

Kindle DX (U.S. Wireless)

Serial no. prefix B004
Download: Kindle DX (U.S. Wireless)

Image of the back of Kindle (Global Wireless)

Kindle (Global Wireless)

Serial no. prefix B003
Download: Kindle (Global Wireless)

Image of the back of Kindle DX (Global Wireless)

Kindle DX (Global Wireless)

Serial no. prefix B005
Download: Kindle DX (Global Wireless)

  1. Transfer Software to Your Kindle: Turn your Kindle on and connect it to your computer using the USB cable. Then use your computer’s file browser to copy the update file from your computer to the Kindle root directory. (The root directory contains a number of folders – such as “audible,” “documents,” and “music” – and is typically denoted by a “device” icon).
  1. Monitor File Transfer and Disconnect: Check your file browser’s file transfer progress bar to ensure that file transfer to your Kindle is complete. When you’re confident the file has transferred successfully, you can use your computer’s unmount or eject function to safely disconnect Kindle from your computer. Disconnect the USB cable from Kindle and your computer.
  2. Start the Software Update: Go to the Home screen, press the Menu key, and select “Settings.” Press the Menu key again, and then select “Update Your Kindle.” (This option will be grayed out if the most recent update has already been installed.) Select “Ok” when prompted if you want to perform an update.

Troubleshooting Update Issues

If you cannot successfully update your Kindle software using the instructions above or encounter any difficulty with your software update, please contact Kindle Support.
To reach Kindle Support via phone or e-mail, please click the “Contact Us” button in the right-hand column of this page. Contacting us through the website allows you to verify security before a call is placed and ensures we have your account information ready when we call you.
You can also reach us by calling one of these numbers:

  • Inside the United States: 1-866-321-8851
  • Outside the United States: 1-206-266-0927

Information for Kindle (1st Generation) Users

The most recent software update version for Kindle (1st Generation) is version 1.2. If you don’t have it, you can download version 1.2.

Kindle Nation Daily Free Book Alert for Monday, June 14: New Mid-Day Additions from Karen Kingsbury & Brandilynn Collins!

Two mid-day additions to our updated list of dozens of free Kindle promotional titles:

Violet Dawn
A new daybook from inspirational author Zig Ziglar and a popular religious novel start the week’s free Kindle Store promotional listings:

by Dwight “Ike” Reighard 5.0 out of 5 stars (2 customer reviews)
(Love Comes Softly Series, Book 1) by Janette Oke 4.8 out of 5 stars (104 customer reviews) 

Also, if you are a fan of Kindle Store bargains, don’t miss this weekend post:

Kindle Nation Daily Bargain Book Alert: 15 Great Reads from 79 Cents to $1.99!

Here’s the rest of our updated list of free promotional titles in the Kindle Store as of June 14:

From the Kindle Nation Mailbag: Kindle Nation Citizens Raise Concern with M-Edge Guardian Case for Kindle

Thanks to several Kindle Nation citizens who have written in to share the disappointing news that the new waterproof M-Edge Guardian Case for Kindle has what will be, for many Kindle owners, a deal breaker or fatal flaw. Since we raved about the case the other day, it is important that I do the right thing to make it clear here that, with the case secured, you can’t access the sliding switch at the top edge of the Kindle. As one Kindle Nation citizen wrote in:

The fatal flaw of this case is that you can’t access the sliding switch at the top, so as soon as your kindle goes to sleep, you’re screwed. You can’t wake it up without removing it from the case, which is not ideal when you’re on a sandy beach. 

Here’s what M-Edge had to say to Kindle Nation citizen Dave when he emailed the company about the problem:

Thank you for your interest in the Guardian! M-Edge designers explored numerous options to allow access to the on/off sliding power switch, including flexible materials, exotic waterproof switches, and software modifications to Kindle itself. The difficulties associated with incorporating this option while maintaining the main goal of the product–a highly functional floating and fully waterproof case to be launched in Spring 2010–led us to proceed with our current design. We understand that for some customers this limitation is a deal breaker, and we respect that.

We hope you’ll find that the positive benefits included in the Guardian–100% waterproof, floating case, with screen protection to cut down on glare, and by far the most rugged protection you will find for your Kindle–far outweigh the power switch access limitation.

Rest assured, we are working aggressively to identify a solution to this issue. One way you can help is to e-mail Amazon and ask them to include the option to turn off the “sleep/screensaver” feature in their next software update, or include a “wake up” keyboard shortcut. If enough people ask, we’re confident Amazon will listen!

We appreciate and value your candid feedback. Everyone at M-Edge is committed to putting forth highly innovative products that make reading the absolute best it can be.

Meanwhile,  Amazon itself has provided some sharp new alternatives to the standard black Kindle case, as shown here:

Here’s a link for your convenience.

Kindle Nation Daily Free Book Alert: 2 New Titles for Monday, June 14

A new daybook from inspirational author Zig Ziglar and a popular religious novel start the week’s free Kindle Store promotional listings:

by Dwight “Ike” Reighard 5.0 out of 5 stars (2 customer reviews)
(Love Comes Softly Series, Book 1) by Janette Oke 4.8 out of 5 stars (104 customer reviews) 

Also, if you are a fan of Kindle Store bargains, don’t miss this weekend post:

Kindle Nation Daily Bargain Book Alert: 15 Great Reads from 79 Cents to $1.99!

Here’s the rest of our updated list of free promotional titles in the Kindle Store as of June 14:

Kindle Nation Daily Bargain Book Alert: 15 Great Reads from 79 Cents to $1.99!

The more we see agency model publishers like Hachette Book Group conducting their own price experimentation — which in this case has moved suspense novelist Elizabeth Peters from backlist back to bestseller and greatly enhanced her ebook royalties in the bargain — the more certain we are that the experience will, all in due time, bring them back to a sane and sensible, reader-friendly pricing approach. Even if they they have to travel a bumpy road, pay some lawyers, and eat a little crow in the process of getting from here to there. Tastes just like chicken, I’m told.

Last month we congratulated Hachette for offering Peters’ backlist titles The Hippopotamus Pool and Crocodile on the Sandbank at great bargain prices in the Kindle Store. They are still $1.99, and now they have been joined at that price by two more of Peters’ Amelia Peabody series classics, of which a Publishers’ Weekly reviewer wrote: “If Indiana Jones were female, a wife and mother who lived in Victorian times, he would be Amelia Peabody Emerson, an archeologist whose extraordinary adventures are guaranteed entertainment.” (Thanks as always to Kindle Nation citizen Yondalla for the heads up!)

Speaking of great prices in the Kindle Store, as Amazon prepares for changes in the Kindle Store that will make it much more profitable for authors and independent publishers to price their ebooks between $2.99 and $9.99 beginning on or about June 30, 2010, it’s interesting to see the positioning of ebook titles recently priced in the range between 79 cents and $1.99. About a dozen of them now, including a number of self-published or indie-published titled, in the top 100 paid Kindle Store bestsellers. Plenty of goodies here, while supplies last!

Hide by Lisa Gardner – $0.79 – 4.1 out of 5 stars  (76 customer reviews) (Bantam, a Random House imprint)
The Surgeon: with Bonus Content  by Tess Gerritsen – $1.99 – 4.5 out of 5 stars (181 customer reviews) (Ballantine, a Random House imprint)

A Dirty Business by Joe Humphrey – $0.99 – 4.8 out of 5 stars (4 customer reviews) (Vendera Publishing, an indie publisher)
Thin Blood by Vicki Tyley – $0.99 – 4.4 out of 5 stars (18 customer reviews) – Published directly via Kindle DTP
My King The President by Tom Lewis – $1.00 – 5.0 out of 5 stars (5 customer reviews) (McBryde Publishing, an indie publisher)
Toe Popper by Jonny Tangerine – $0.99 – 4.8 out of 5 stars (8 customer reviews) (Grisaille Press, an indie publisher)
Kill & Cure by Stephen Davison – $0.99 – 4.0 out of 5 stars (23 customer reviews) (Alice&Fred; Books, an indie publisher)
Kindle Bible – The Holy Bible Formatted for the Amazon Kindle – King James Version – $1.99 – 4.2 out of 5 stars  (5 customer reviews) – Published directly via Kindle DTP
Containment by Christian Cantrell – $0.99 – 4.3 out of 5 stars (40 customer reviews) – (Cantrell Media Company, an indie publisher)
Punctured by Rex Kusler – $0.79 – 4.6 out of 5 stars (5 customer reviews) – Published directly via Kindle DTP
Defending Evil by Charles Shea – $0.79 – 3.4 out of 5 stars (17 customer reviews) – (Charles Shea, an indie publisher)