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E-book ‘fracas’ makes waves

Published:February 10, 2010, 6:53 AM

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Updated: August 21, 2010, 4:35 AM

LOS ANGELES (AP)—The head of Warner Music Group expressed hope Tuesday that the recent “fracas” over the price of e-books would help give content creators such as his company more pricing power over device makers.

Amazon.com Inc. was pitted in a pricing dispute with publisher Macmillan over e-books made available on Amazon’s Kindle e-book reader. Amazon typically sells e-books at a flat rate of $9.99, even best sellers and new releases, but Macmillan and other publishers believe that price is too low and threatens the value of books overall.

Amazon agreed under pressure to raise the price to a range of $12.99 to $14.99 when first released, with prices changing over time. The move is seen as a way to protect the value of higher-priced hardcover print books.

“I think what this signals is that content is going to have more pricing flexibility over time rather than less, because frankly, the only thing that drives iPhones, iPads, Kindles, Zunes and other kinds of devices is content,” Warner Music CEO Edgar Bronfman Jr. said. “I think the power of content in that little fracas with Amazon was clearly evident.”

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