With the Justice Department ramping up its apparently silly collusion case against the book publishers for agreeing with Apple to set their own prices, Rowling is showing that publishers and authors really do have the pricing power—if they’ll just use it.
It’s true that no other author comes close to having the power Rowling does. If the author of the Unofficial Harry Potter Cookbook, say, goes to Amazon and tries to get the same deal, Amazon will probably tell her to get lost.
But if Random House or Simon & Schuster told Amazon et al. they were following suit, the booksellers might have to play along. That way publishers could legally control the price of their products while reducing the fees they pay to intermediaries and creating a sales infrastructure that costs far less than 30 percent.
Amazon and Barnes & Noble can still sell their Kindles and Nooks for however much they can get for them. And publishers and authors can do the same with their products.
The big problem here is that such a system would make buying books more of a hassle—forcing readers to input their credit card and address data each time they make a purchase. Publishers and/or authors would need to figure out how to fix that. They’d better get started.