original mac screen fonts, from folklore.org

There’s a battle going on in the e-book field, one of the few media businesses that’s truly booming these days.

At stake: what these non-thing purchases will cost you.

In one corner: Amazon. The Seattle e-commerce king and Kindle e-book machine seller wants to set its own e-book prices (with most mass-market titles at $9.99), no matter what publishers want.

(Amazon also wants to eliminate the “hardcover window,” the early months of publication in which only the high-priced deluxe version of a book can be bought. Specifically, Amazon wants to sell e-books of a title the same week as that title’s dead-tree version first comes out.)

In the other corner: Five of America’s six biggest publishers (HarperCollins, Hachette, Macmillan, Penguin, Simon & Schuster), plus Apple (in a third corner?). The publishers have publicly proposed a different pricing structure, which they call “the agency model.” Under this scheme, publishers would set e-book retail prices. The e-book selling sites (Apple, Amazon, B&N, Kobo, etc.) would keep a 30 percent margin from this price.

Early last year, Macmillan threatened to withhold its titles from Amazon’s Kindle e-book platform until Amazon capitulated to the “agency model,” which it did; but only after Amazon threatened to withhold selling Macmillan’s physical books from the main Amazon site.

Now, a Seattle law firm has filed a class action suit in a California U.S. District Court. The suit alleges the five publishing giants and Apple have conspired to drive up e-book prices. The law firm names two individual consumers, in California and Mississippi, as the case’s official plaintiffs.

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With all this going on, William Skidelsky at the Guardian asks what’s the “true price” of a book as a written and edited document, rather than as a physical object.

Skidelsky quotes ex-Billboard editor Robert Levine, who’s written a forthcoming tract entitled Free Ride: How Digital Parasites are Destroying the Culture Business, and How the Culture Business Can Fight Back. Levine, as you’d guess, takes the side of the intellectual-property industry, including the book publishers.

Levine (as quoted by Skidelsky) states that it only costs $3.50 to “print and distribute” a hardcover book.

Thus, the argument goes, e-books should be just that much cheaper than physical books, no more.

However, it’s not that simple.

First of all, the whole pricing structure of physical books is about the design, manufacture, shipping, warehousing, and retailing of the object; including big margins to the retailers and wholesalers (who still sometimes have trouble keeping afloat). When all that’s reduced to the storage of some megabytes on a server, that whole pricing model goes away.

And much of the publisher’s share of a book’s price includes an allowance for the industry’s tremendous physical waste. If a copy shipped to a bookstore doesn’t sell, it gets sent back. All those copies are either re-shipped at clearance prices (more likely for coffee-table picture books) or destroyed. With e-books, none of that happens.

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You will note that, aside from Levine, we haven’t mentioned authors.

What would an e-book pricing structure look like if it were based on the people who actually make what’s being bought?

Take the current royalties for a book’s authors and illustrators.

Then at least double them.

Not only do the creators deserve it, but such a step would acknowledge that, since e-books are cheaper to get out, there will be more titles out there scrambling for readers’ bucks, and hence each individual title might not sell as much.

Then add in a budget item for the work-for-hire participants in a book’s making—the editors and designers and cover artists and licensors of agency photographs. Again, they’d be higher than for traditional paper books, to make up for lower expected total sales.

There’s still a role in the e-book realm for what we call “publishers.” They put up the money. They arrange promotion and advertising. They put authors, artists, and editors together. In many cases, they organize the transmutation of a vague idea into a saleable product.

Once these parties all have their pieces of the pie set into a fixed wholesale price, e-book sellers could charge as much or as little as they think they can get away with.

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That’s one potential e-book pricing model. There are others.

One is that of Take Control Books, for which I’ve worked in the past. They sell their e-books directly on their own site. Half the retail take, minus a cut for the company’s e-commerce provider, goes directly to the authors. (Take Control sells its e-books as .pdf files, which can be transferred with greater or lesser ease to all e-book reading devices.)

Another is self publishing, that past and present refuge of the artiste with no perceived commercial potential. Only in the e-book age, some authors are actually succeeding this way.

Earlier this year, bestselling thriller writer Barry Eisler said he was walking out of his “handshake deal” with St. Martin’s Press. For the time being, all books written by Eisler will be published by Eisler.

Of course, Eisler has an established “brand” for his works; much like Radiohead had when they released a download-only album. And Eisler has experience in the Silicon Valley startup world.

A more realistic role model would be that of Amanda Hocking. She’s young. She’s photogenic. She writes in a popular commercial-fiction genre. She’s sold a million e-books without a corporate backer (she’s got one now, though).

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The business side of book publishing, as I’ve carped here for years, has been a moribund, tradition-obsessed infrastructure of waste and lost opportunity.

E-books represent the biggest chance in decades (since the rise of the big-book bookstore chains) to fix this.

Let’s not blow it.

(Thanx and a hat tip to Michael Jacobs for suggesting added angles to this story.)