“The $9.99 Ebook Is Dead: Third Major Publisher Hachette Dumps on Amazon”
Hachette’s the third major publisher to push for the agency model, following MacMillan and HarperCollins: They’ll set the ebook prices (higher, natch) and the bookseller takes a cut. The $9.99 ebook? Poof.
Amazon tried to pull an iTunes and make the e-book market viable in spite of the publishers, but that kind of trick only works once (and, even then, Steve Jobs knew not to try and get record companies to sell digital albums cheaper than the physical items).
And it’s too late for Amazon to encourage self-publishing on the Kindle; that one is up to Apple now.
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