Random House Adopts Agency Pricing

Random House has announced that they will be adopting the agency pricing model as of March 1, 2010. The agency model allows publishers to set the price of a book and pay retailers a commission.  In its press release, Random House says that

The agency model guarantees a higher margin for retailers than did our previous sales terms. We are making this change both as an investment in the successful digital transition of our existing partners and in order to give us the opportunity to forge new retail relationships.

The list of Random House imprints is quite large, as shown by this list from Wikipedia.

The other five of the Traditional publishers adopted the agency model last spring. The prices for eBook from Traditional publishers rose significantly.

Coupled with the news that Harper Collins is limiting library checkouts on ebooks, this is devastating news for eBook lovers who were hoping that the agency model would disappear and market forces could act on prices.

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