An article in the New York Times today suggests Apple may have a little more control over low ebook prices than initially thought. Publishers were turning to Apple and its iPad to save them from the clutches of Amazon and the $9.99 Kindle price point. While Apple does offer more flexible pricing options, it has also made provisions for lowering the prices of the most popular books, back to that $9.99 figure the publishers so hate.

The Times cites “at least three people with knowledge of the discussions,” as the source for the news. It’s not just bestsellers, either. Apple expects publishers to reflect discounted book prices, books sold below the typical $26 hard cover price, in their ebook pricing as well, regardless of bestseller status.

This has to make you wonder what really had the publishers upset with Amazon. Obviously they’re aware of the things Apple laid out in its contract, so what’s the issue? Do they just want some extra income from less popular titles? Are there other Amazon policies that turn publishers away or is it really just a lack of flexibility?

Currently if you want to watch a TV show from iTunes you’ll be paying two bucks per show. That’s just the standard def content – high def will run you an extra dollar per episode. Apple may be ready to change that, though, dropping the price of television content to just a dollar per episode with the potential for bundled services down the line.

The news comes courtesy of the Financial Times, which claims that the price change will come at the end of April to coincide with the iPad launch. The pricing shift would include a “best of TV” subscription service for $30/month that would potentially replace your cable bill. Oddly enough, it’s Apple that has left the Apple TV out of the discussion and not the media. Apparently the company is concerned with scaring content providers away from the lower prices once they realize that content could be viewed on full-size television screens.

Source: Gizmodo

Warner Music Group delivered some interesting news in the wake of the Macmillan/Amazon standoff. When Warner was finally given pricing flexibility for its iTunes content last April it kicked off a slow decline in sales growth.

As Warner put things, year to year “digital track equivalent album unit growth” was down from 10 percent in the September quarter to just 5 percent for the December quarter. We can still blame the recession in part, but the decline didn’t begin until prices went up. As Peter Kafka at AllThingsD notes, the digital music business is much more mature than the ebook industry. Also, despite the decline in sales growth, Warner CEO Edgar Bronfman Jr. said the change has been a net positive for his company.

Despite the warnings for publishers in this news, I still think the ebook industry is young enough to pull of the price increase without much negative impact.

Source: AllThingsD

Barnes & Noble has finally gotten its Nook production to catch up with consumer demand, and it’s just in time for Valentine’s Day. The company is using the holiday of love to help market its Kindle competitor, throwing in some extra goodies just in case you weren’t already sold on the device.

When you order you’ll get access to the “More in Store” content from Barnes & Noble, which includes a short story from Adriana Trigiani, a red velvet cupcake recipe by Anne Byrn, aka Cake Mix Doctor, and access to a regular feature called “Read Between the Wines,” which is about pairing your books with your vintage of choice.

If you order online your Nook will be shipped for free. If you prefer the in-store experience, the device will be available starting February 10th.

Source: Engadget

During News Corp’s quarterly earnings conference call, Rupert Murdoch finally revealed his true feelings about the deal between HarperCollins, which News Corp owns, and Amazon for ebooks in the Kindle Store. “We don’t like the Amazon model of $9.99….we think it really devalues books and hurts all the retailers of hardcover books.”

That pretty much says it all. Now that the company has an option coming with the iPad, it no longer needs to succumb to Amazon’s demands. Things are just the opposite, in fact, thanks to flexible pricing options from Apple. The competition is forcing Amazon to renegotiate prices with publishers for fear of losing market share or publisher support altogether.

It’s tough to say that increased ebook prices actually preserves the value of the book, particularly after prices have been so low. Fortunately for publishers, the ebook reading population was small enough that the rest of the world might not know to care about the difference.