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Amazon and publisher Macmillan finalized their agreement for higher-priced e-books over the weekend. The deal is expected to serve as a template for other publishers, and the new prices should take effect in March, when Apple’s iPad goes on sale.

While Amazon said a week ago it would “ultimately” have to concede to Macmillan’s demands for higher e-book prices, a formal settlement between the two companies came over the weekend, and Macmillan-published books went back on sale on Amazon.com. The Wall Street Journal noted that the agreement between the two parties will likely “set the stage” for changes in the e-book market in 2010, as Apple enters the fray with its new iPad.

“By agreeing to accept a new pricing model, Amazon has publicly acknowledged the sudden emergence of a rival that may not only threaten its highly popular Kindle franchise but also its total domination of e-books,” the report said. It noted that new, higher prices, at least for Macmillan, would begin when the iPad goes on sale in March.

read full article: Higher Amazon e-book prices expected to coincide with iPad launch
appleinsider.com

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