Social Media & Technology

Are E-books Really a Ripoff?

Posted by on Dec 29, 2011 | 32 Comments

I’ll be the first to admit I’m a little late to the e-book game. As an analyst of social media, gadgets, and other emerging technology, I seem to find little time to actually sit down and use what I write about. Like other early Gen Y types, I tend to expect instant downloads and updates of all my media. Living in an outlying rural area of Seattle has thereby and effectively made it difficult to satisfy my need to read without a Kindle or Nook, as I reluctantly find excuses to avoid driving an hour out of my way to just to buy a book if I want it immediately.

That is, this was the case until Christmas a few days ago, when “Santa” brought me a new Kindle Touch. I specifically asked for an Amazon Kindle instead of a Barnes & Noble Nook as I am an Amazon Prime member, and the membership is more beneficial with a Kindle than with a Nook. However, a recent spike in e-book prices are forcing me — and thousands of other Kindle and Nook users — to question the necessity of these e-readers. The Wall Street Journal is reporting a new “pricing scheme” that has increased the price of some e-books to the extent that they actually cost more than their paperback or even hardcover companions.

The Wall Street Journal calls this “sticker shock” for many consumers, as introductory pricing on e-books was the opposite — likely to entice users to buy the initially expensive Kindles and Nooks, which were originally priced around $399. Now, Kindles are priced as low as $79. My Kindle Touch, which includes Wi-Fi and a 6″ E Ink display, is currently priced at only $99. MSNBC explains that, in contrast, retailers were previously “selling e-books for around $9.99, or sometimes less, making the ownership of an e-reader look like a value proposition when compared with the double-digit price of buying a new hardcover book.”

Now, Barnes & Noble and Amazon are raising the price of books well beyond the price point of the formerly higher-priced paperback and hardcover books. MSNBC, via the Wall Street Journal, explains that six of the top book publishers have agreed to set prices for the electronic books they sell. This new pricing agreement among publishers is preventing retailers from discounting e-books without a publisher’s permission, but no such agreement exists when it comes to printed books.. As a result, Nook and Kindle readers may now be seeing prices for paperback and hardcover books higher than books delivered right to their readers.

The WSJ points out that over on Amazon.com, Ken Follett’s 985-page novel, Fall of Giants, is priced at $18.99 as an e-book, but can be purchased in paperback for $16.50 on Amazon.com. At Barnes & Noble, The Last Song by Nicholas Sparks is priced at $2.99 if ordered as a hardcover book from barnesandnoble.com. However, Nook readers must pay $7.99 for immediate delivery to their Nook. For Barnes & Noble members with a membership, shipping is free for all books — leaving many Nook users (and potential buyers) to question why they even need a Nook, considering the drastic price difference. Some Nook users are even choosing to order the paper book version anyway, even though they own and use their Nook, as they’re finding that some e-books are really just a ripoff.

It is important to keep in mind that many features of e-books offer value that can’t be matched with a paperback or hardcover version, such as the ability to easily lend a book or check it out from your local library on demand via your Nook or Kindle. This leads to the most important question for Nook and Kindle users to answer: What is worth more? Convenience, or a $5 savings per book? (Keep in mind that not all e-books are priced higher than paperback or hardcover books — yet.)

As a new Kindle Touch owner experiencing the joy of being able to read anything I want on demand, I have to honestly ask if I am really so impatient that I am not willing to save a few dollars and order a book online as I have always done before. Or is the luxury of having the small, lightweight Kindle Touch, which can fit in my purse and contains all of the reading material I may desire at anytime, anywhere, worth any price difference I may encounter on Amazon?

What do you think? Do you own a Kindle or Nook, or are thinking of buying one soon? Will the change in e-book pricing change your opinion of using a Kindle or Nook? Share your thoughts in the comments.

  • Pandy1954

    I just got the Kindle touch about a week maybe two ago. So far I have a couple of 99 cent things to read or the free ones they offer. If they get too expensive on Kindle, i will just get a paperback. I’m sure some will be cheaper on Kindle, some cheaper at a Grocery, or Book store. And there is always the Library.

  • Anonymous

    “It is important to keep in mind that many features of e-books offer
    value that can’t be matched with a paperback or hardcover version, such
    as the ability to easily lend a book or check it out from your local
    library on demand via your Nook or Kindle.”

    I completely DISAGREE.  I own over a dozen Nook books, and I cannot lend a single one. 

  • http://bra.ms Will Bramlett

    I think the publishing industry should pay attention to what happened to the music & film industries. When you charge too much, bad stuff happens! I buy my music because it’s, for the most part, reasonably priced.. Movies & TV shows are much harder for me to make that commitment. I’ve been buying books, but if they want to jack up their prices, I’m not sure how much longer I can last.

  • HarryMonmouth

    I did write a lengthy comment about this but the shoddy iPhone twitter app closed and it disappeared. Suffice to say if an ebook is more expensive than a physical item then I torrent it as a matter of principle.

  • Bill Landon

    With the recent ebook price increases they need to be a more value added purchase. For example, $17.99 for a new release ebook shoud also include a copy of the dead tree format, that they mail to you within 30 to 60 days. The reverse has been working well for DVD’s, many now come with digital download. That scheme would entice me to pay more for an ebook.

    • http://twitter.com/Thomas_Bale Thomas Bale

      Also when you buy a Blu Ray you often get a DVD copy as well. Same kind of theory.

    • http://twitter.com/Thomas_Bale Thomas Bale

      Also when you buy a Blu Ray you often get a DVD copy as well. Same kind of theory.

  • Craig McMaster

    I wouldn’t even think of buying an ebook if the price is higher than than a real book.
    The fact that they are crippled with DRM and proprietary only makes things worse.
    Therefore no ereaders for me.

    • Don Lowery

      There are ways to remove the DRM. Some say it is illegal…but if you purchase the book…you should have the same ability to do with the e-book the same as if you purchase the paper version.

      • kevin sexton

        The problem is that breaking any encryption or DRM is illegal in the US. Also, you don’t get to purchase the ebook, you are purchasing the rights to read it, and that’s how they get away with the DRM

  • Brad Tomlinson

    I was just given a Nook Simple Touch for Christmas, and I really like it.  I was not aware that some e-books cost more than a regular book.  There is a Barnes & Noble within walking distance from my condo, so I will have to check out the prices of both forms before I purchase one.

  • Forevrlost

    I agree completely, the price increase will sway my purchase.
    In some ways yes ebooks are a “convience” because you can get them instantly.
    But when you can go onto Amazon or other online retail
    Stores the paperback book in 10x cheaper than
    A digital version. Or just subscribe to audible and get to listen
    to the book on the cheap.

  • http://openid.stevepelletier.net/HumbleOpinion Steve

    The book publishers forced Amazon to raise prices about a year ago, using a licensing model for selling books. Here are a couple of articles, but you can search on Google or Bing to find more.
    http://goo.gl/0u3QP
    http://www.businessweek.com/technology/content/feb2010/tc2010022_235542.htm

    If you wait long enough, the publisher will drop the price. It usually takes about a year, by which time the paperback sells for $1.

  • J-smith-1404

    I was considering buying a Kindle but since the price has risen so high I will not be buying one.

  • http://twitter.com/JoshuaNoyce Joshua Noyce

    While I have a Nook Color, and love reading I will never get rid of my Classic Books. they are good and I love the way that the pages feel as I turn for them. As for e-books being more expensive, I think that they should be cheaper however I agree with Kelly that I would much rather have the book right now right then and not wait for the book to arrive via amazon, or drive to a Barnes and Noble over five miles away.

  • Thudson56

    It’s great to download e-books from the library onto my Nook, and I can find many of the classics for free, so I have lots of reading to do from that list.  Anything that is past copyright is available (see Project Gutenberg at gutenberg.org).  I can also read anything on my Nook that is in PDF format, so I often download and/or convert documents and articles to read on the Nook too.  Poetry books read much better in printed version, and some books are just not available in an e-book format yet, so I still read and buy books (usually used).  But I try to get any popular literature through the public library, so what I an downloading or bringing home are things I want or need to keep. 

    I will never pay more than the price of an actual (paperback) book for the virtual version.  It just doesn’t make sense.  Especially since I can take an actual book to a used book store to either exchange it or sell it to them. 

  • Branigan MJ

    I recall that there were book pricing agreements here in the UK some 10-15 years ago, where up until that time the prices were fixed by the publishers. Booksellers, including the grocery chains, were not allowed to discount. People stopped buying books, the restrictions were eventually removed. It appears to have come full circle, they are back at it again with e- books…what a shame.

  • Mjdodd

    I am feeling right ripped off by e books. Having bought a sony reader in the Uk but live in France I find I can only download ebooks from world wide sources (such as USA where copyright is held often for world rights) or French books that I do not want as I bought an English reader.

    As to pricing I agree that the wholesalers will probably have in hte long run to go the same way as music and reduce the prices but  they do seem to be making hay as the sun is shining now!

  • Andrew

    Thankfully in the UK it is illegal for suppliers to set prices – they can recommend (for most products) but ultimately the price is the choice of the retailer, so it is still in the interest of Amazon, and increasingly Nook (which was only introduced properly a few months ago but is gathering good pace) to keep prices low. I’m amazed there is no such law in America!

  • Augie

    I received a Kindle Fire for Christmas. I bought ebook from Amazon 9.95. but have scince borrowed from local library, getting free from Gutenberg.org. 

  • Mark

    Price fixing/Price gouging is still wrong, no matter how you wrap it up and that is what the publishers are doing. I have a K2 kindle and enjoy it but I will always buy physical books for any number of reasons including DRM and battery power for the ereader.  And in the words of Frank Zappa – “People like to own stuff”.   If my book is only in digital form where someone else controls the DRM, I don’t, in my opinion, own it.

  • Perrymuray

    I think that a lot of publishers are raising the price of e-books because they can be copied and put on torrent or warez sites therefore they lose money but there are some sites that give away books or let you read the first few chapters hoping that you will buy the e-book or the book when it is put out. They figure that if your interested in the author or the book that you might buy it.  Some sites do have reasonable prices but usually not the big retail stores try the publisher sites

    • swattz101

      I understand where you are coming from, but this idea has never made sense to me.
      RandomHouse sells a book for a set price. Consumers thing the price is to high and pirate the book. So RandomHouse raised the price to make up the difference, therefore encouraging more people to pirate it?

      I understand that it costs money to write, edit and publish. I’ve also come to terms with the idea that mass production, warehousing and shipping costs pennies per book, and does not make that much of a difference in the price of the dead tree versions. I also understand that as e-books sell more, paper versions sell less, and the publishers bulk discount is not as big. I still think e-books should cost less than paperbacks, just not as much as I used to.

      My biggest issue with e-books is the lending (which is coming around) and being able to buy/sell used books. I buy most of my books used. I understand the publishers are loosing money on used books. It’s the same reason many game developers are selling download content that is free with a code that comes with a new purchases but needs to be purchased by someone buying a used game. Since you can’t really buy/sell a used e-book, the publishers should be making more money off of them and be able to lower the price a little. 

  • Anonymous

    I really hate that eBooks often cost more than physical books.  It’s a total ripoff!  But the convenience is worth it for me.  I like that I can easily read any book with one hand on my iPod.

    If eBooks get too expensive…I won’t buy them.  I don’t have the space for physical books, so if the eBook it too expensive then Amazon or whoever will end up with $0 from yours truly :P

    While I like how well researched a book tends to be, there’s millions of websites & blogs giving out similar information for free.  (I really only read educational books BTW)

  • alxndr01

    In “Star Trek: The Search for Spock” McCoy came to Kirk’s home on his birthday and Kirk was reading a physical book. McCoy says to Kirk, “Why are you reading that when you can have it on your computer?” Kirk says, “There’s something about holding a book in your hands.” Authors’ writings are works of art and are not treated as works of art. Once sold the author and publisher make nothing from any resales as occurs with paintings. When an original work of art is sold a contract is enacted where the agent and artist will be given a percentage of the resale of that work of art. Companies like Amazon continue to prosper by buying back books and selling them for less than the original sales price. The author and publisher make nothing from that. This is especially problematic for small publishing houses. Now, some of the major book distributors will no longer handle books from small publishing houses. They have to rely solely on Amazon and other major sales outlets. Getting Amazon to handle your book in the first place is no easy task either.

  • Pkohlbeck2

    I am happy to comment.  I encourage everyone to use their public library.
    Ok so sometimes it is necessary to wait for the book desired to become
    available.  Also, each book {real book) has a different feel – the cover is
    inviting – lthe font in each book is unique and there is a specialness of
    each book.   I hope never to feel the need to buy a nook or kindle.
    Thanks.   

    • Thudson56

      I don’t think you need to write them off entirely.  They have their advantages, one of which is encouraging people to use the library more by downloading books from there.  It’s great when I’m on a trip and I’ve run out of reading material.  I just log on to my local library website and download something new.  Or I go to gutenberg.org and find something there.  That way I don’t have to pay for a book and then leave it behind because I just don’t want to add one more pound to my carry-on.  I read fairly fast, and I used to have to take two or three books with me for a week-long trip.  Now I just carry my Nook and I have something to read wherever I am. 

      I don’t think they should be all that one uses, though – for all the reasons people have given. 

      Make new technology your tool, not your master.  Refusing to consider using it even when it might be a good thing in certain circumstances is another way of making it your master, IMHO.

  • Nathaniel Gale

    Paper books costing less than their digital counterparts? Publishers and distributors are practicly begging people to pirate their books. E-books cost distributors pennies, while a $27.95 hardcover book costs $6.38.

  • Bob Snyder

    Price gouging is illegal here in the U.S., as well, Andrew from U.K. Unfortunately, it takes something just this side of an act of God to get that particular law enforced these days! The E-Book market is just taking off and the publishers immediately take aim to shoot themselves in the foot! Publishers, if you don’t want your product to be pirated, don’t charge more than it is worth – you’ll only hurt yourselves in the end.

  • Joe Gumbleton

    I will not pay more for an eBook then a paperback book. I bought the Kindle very early and thought that it was worth the price (at that time). I enjoyed being able to download instantly. But if they are going to up the price of the eBook (which is very inexpensive to produce) then I will go back to paper.

  • http://pulse.yahoo.com/_VLKLQADI42VAZ2Z474G2P2LV54 Jim

    I own a Sony E-Reader and have software that will convert anything to PDF. Therefore I can browse for the cheapest price on any e-book. Eventually the price will come down after the newness wears off. Then I will leap on it.

  • SusieQLibrarian

    Support freedom of information and keep your money in your pocket. Get a library card. ♥

    http://www.spl.org/library-collection/digital-books-and-media