The agency model may have drawn a host of class action lawsuits but Barnes & Noble sees it becoming the dominant form of pricing. In a conference call discussing first quarter results, CEO William Lynch said agency model pricing continues to expand and he sees it becoming the dominant form of pricing for e-books. According to Lynch, the majority of its e-book sales come from agency-priced books and its self-publishing platform. PubIt titles tend to be priced at $2.99 with e-books ranging from $9.99 with some publishers testing $19.99.
B&N also sells apps using the 30% agency model and Lynch said sales of apps has exploded since its launch exceeding projections by 200% and is now at an annual “run rate” of “tens of millions.”