Tech Mails

Re: Book Prices Thoughts

Steve Jobs to Eddy Cue, January 14, 2010

Exhibit
From
Steve Jobs
Sent
Thursday, January 14, 2010 6:21 PM
To
Eddy Cue
Subject
Re: Book Prices Thoughts
I can live with this, as long as they also agree to the other thing you told me you can get: The retail price they will set for any book will be the LOWER of the applicable "iTunes" price below OR the lowest wholesale price they offer the book at to anyone else, with our wholesale price being 70% of such price. For example, normally our retail price for a $26 book will be $12.99 and we will pay 70% of that, or $9.10. However, if they offer the same book to Amazon for a wholesale price of, say, $12.50, then our retail price for the same book shall be set at $12.50 and we will pay 70% of that price for the book. if they are offering a $26 book to Amazon On Jan 14, 2010, at 6:04 PM, Eddy Cue wrote: Here is the pricing I think will push them to very edge and still have a credible offering in the market. These are the highest individual iTunes prices as each publisher can choose a lower price if they want. List Price Wholesale iTunes 70% Diff $20.01-22.50 $10.00-11.25 $9.99 $7.00 $3.00-4.25 $22.51-25.00 $11.25-12.50 $10.99 $7.70 $3.56-4.80 $25.01-27.50 $12.50-13.75 $12.99 $9.10 $3.40-4.65 $27.51-30.00 $13.76-15.00 $14.99 $10.50 $3.25-4.50 $30.01-35.00 $15.01-17.50 $16.99 $11.90 $3.10-5.60 $35.01-40.00 $17.51-20.00 $19.99 $14.00 $3.51-6.00 The other point I want to get is lowering the price while the book is on the NYT Bestseller List. This will be hard to get because they will be losing an additional $1.40, but we should try. When a book that list for $30 or less is in the NYT Bestseller List than the iTunes price will be no greater than $12.99. Between $30.01-35 in the NYT Bestseller List, the price will be no greater than $14.99. --- Eddy
SJX-000011

About this email

A differently worded version of Jobs's reply to Cue, received about two minutes before the 6:23 PM version, is also in the trial record. Apple's lawyers said the email Jobs actually sent did not include the language about moving Amazon to the agency model.

The whole thread

  1. Jan 14, 2010 Steve Jobs I can live with this, as long as they also agree to the other thing you told me you can get: The retail price…
  2. Jan 14, 2010 Steve Jobs I can live with this, as long as they move Amazon to the agent model too for new releases for the first year.…
  3. Feb 10, 2010 Steve Jobs I'd pass. All the publishers know who we are, and the big guys would rather have you finishing the…
  4. Mar 29, 2010 Steve Jobs Yep. What does Amazon do? Sent from my iPad