Random House "Tread Carefully" in iPad Discussions

24 Mar 2010

The world's largest publisher, Random House could keep its books from the Apple iPad when it goes on sale on April 3rd.

Chief Executive, Markus Dohle is not ruling out the idea but said he is "treading carefully," as he is fearful that the Apple pricing system could erode the existing pricing arrangement of non-electronic books.

The five main rivals of Random House; Macmillan, Simon & Schuster, Hachette, Harper Collins and Penguin are understood to have already agreed deals with Apple for iBookstore.

Currently, publishers are providing discounted rates to online and traditional book shops and are then marking these rates up to achieve profits from customers.

However the price model for the iPad will look dramatically different.

Apple wants publishers to set rates for iBookstore and then give 30% of resulting sales back to the computer company.

Mr Dohle has said that this new pricing programme would mean, "changes, particularly for our stakeholders."

Random House has reported that the implications of this new electronic market would spell huge changes that it must be considered further by authors and agents alike.

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