Amazon.com submitted to Macmillan's demand to allow higher priced Kindle e-books published on an agency model in which Amazon takes a 30% cut, but it is Amazon that comes out the winner, Forrester Research's James McQuivey writes. "Amazon will now make more money than before on each of these books, because they'll get a whopping 30% of $14.99, or nearly $5 a book," McQuivey writes. And even if prices drop back to $10, "Amazon wins in the short run and the long run. And publishers will make less money than before," he writes.

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