With Amazon MatchBook Bundling One Big Step Closer to Reality

Publishers Weekly reports that “After years of false starts, bundling e-books with print books may have gotten the spark it needed Tuesday morning when Amazon announced an October launch date for Kindle MatchBook. Under the program, customers who buy—or have bought—print editions of titles can buy the e-book at prices ranging from $2.99 to free. At launch, Amazon expects to have over 10,000 books in the program, ranging from new books to books that Amazon began selling when it first opened in 1995.”

For background here’s a piece we published several years ago:

Bundling is an age-old merchandising technique in which customers are offered a discount if they purchase two related products. In the case of books, it’s a combo of two formats, print edition and e-book. Though the technical barriers to delivering both in one transaction are coming down, the real issue is how much to charge for the bundle. A little test we gave readers a few years ago will give you a sense of how challenging the concept is:

When you purchase a print book you should be able to get the e-book for…

a) the full combined retail prices of print and e-book editions
b) an additional 50% of the retail price of the print edition
c) an additional 25% of the retail price of the print edition
d) $1.00 more than the retail price of the print edition
e) free

The choices aren’t just economic but philosophical, reflecting just how aggressive a publisher wants to be and the various thresholds at which the publisher believes consumer resistance will melt. A good argument can be made for each, and as the bundling issue warms up you can expect to hear them all endlessly debated.

The time will soon come when publishers will have to choose one of the above strategies and put it into effect. Misjudging consumer attitudes could prove to be a big mistake and possibly a ruinous one. My own view? I strongly believe that the e-book version should be included free of charge with the purchase of the print edition. What do you think – and why?

Details in Bundling: Publishing’s Next Battleground.

Richard Curtis
This blog post was originally published on Digital Book World under the title Why Do We Have to Choose Between Print and Digital?

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