While Apple grabbed the headlines as the main recipient of punishment following the Department of Justice’s ebook price-fixing legal actions, Barnes & Noble might be the company that suffers the most.
When Apple hit the ebook scene with agency pricing, it helped Barnes & Noble build market share and profits for its fledgling ebook business – to the tune of a reported 25% of the marketplace.
In the year that agency went away, Nook has struggled significantly and showed record losses: almost $500 million in 2013 as compared with under $300 million in losses the year prior.
While Nook can’t blame falling device sales on the disappearance of agency pricing, the move that turned droves of profitable content sales (a 30% margin on best-selling ebooks) into ones that may not be profitable at all couldn’t have helped.
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Via: Digital Book World