So indie authors should support Hachette and legacy publishers generally. The underlying concern is legitimate:
Amazon also published the letter on a dedicated readersunited. InHachette and the other big publishers settled a lawsuit with the Department of Justice that maintained the companies had colluded with Apple in to fix ebook prices.
In Maypresumably to increase negotiating pressure on Hachette, Amazon removed pre-order buttons on Hachette bookseliminated discounts on Hachette books, and delayed shipments of Hachette books to purchasers.
Amazon did the same with Warner Brothers DVDs around the same time for several weeks, and a few days ago pulled pre-orders for physical versions of Disney movies.
Amazon is also engaged in a similar action against Bonnier Media in Germany, where antitrust laws are stronger and more strictly enforced. Under the antitrust consent degree to which Hachette agreed, Amazon was free to set retail prices for two years. That period is over, and Hachette now wants to set the retail price for ebooks, offering Amazon a percentage of the retail price.
In essence, Hachette is looking to use the agency model, which gives pricing control to the publisher, whereas Amazon wants to stick with the wholesale model, in which resellers pay a fixed wholesale price and set whatever retail price they want. In many cases, the agency model provides a higher profit to a bookseller.
Another piece of the background is a public letter that appeared in a recent Sunday New York Times. The text is available at another dedicated Web site at authorsunited. In fact, paperbacks were initially ignored, became absurdly successful, and were then adopted by the big firms as a way to extend revenue into new outlets outside bookstores and reach a new audience.
Paperbacks were and remain part of the diversification of the publishing market, which Amazon should know because it, well, sells print books. Huffington Post has a good summary of accounts from this period.
One might think the Amazon Books Team, the nominal signatory of the letter, had become unhinged. In the actual event, Orwell loved paperbacks, was committing an act of irony and hyperbole in suggesting a combined effort impossible in any caseand went on to state that the low price of paperbacks could destroy the economic basis on which authors, booksellers, and publishers functioned.
This open letter contains escalated and abbreviated versions of previous economic claims by Amazon, and advises bizarrely that KDP authors the email and average readers the Web site should send nastygrams to the head of Hachette accusing him of collusion, among other slightly off-kilter talking points.
This may be because the ad paid for by authors suggests people email Jeff Bezos directly. It smacks of a temper tantrum. The trouble is that in this and previous efforts, Amazon misstates and misleads on the numbers. Many particular books may exhibit changes, but in order to test this, Amazon must have engaged in presenting different prices to different customers, changing prices for periods of time, and so forth.
No two books are identical, so their testing had to be using the same book and exposing different prices. The publishers in question, and most publishers, continue to print books as well as issue them in ebook editions. TidBITS Publishing, with its Take Control series, is one of a relatively small number of publishers across fiction, non-fiction, textbooks, and more that delivers books solely in electronic form.
As a result, publishers have to deal with the cost of production across multiple media: Plus, any potential profit from a single book has to be spread across the various formats in which it appears.
Over time, ebook prices for the same title tend to drop as demand lags. But it is abundantly true that most books from most publishers make very little profit after overhead, production costs, and author royalties are subtracted. A number of books lose money, but hopefully not too many, lest the publisher perish.
Importantly, a handful of books each season are blockbusters that, combined with evergreen titles that recouped their costs in previous years, account for the majority of whatever profits are recorded. That last point is disarming:To those taking sides in Amazon vs. Hachette, this fight isn’t simply a contract negotiation between two large corporations.
It’s a clash of value systems; an actual example of class warfare. Amazon seems to understand that better than Hachette does, and it is successfully . Amazon Offers Authors % of eBook Sales During Dispute with Hachette – You’ve got to give it to Amazon and Hachette – both are doing a good job of keeping attention focused on the dispute.
Frankly, I think Amazon is winning the public relations aspect of the battle, and it’s because of strategies like this. The actual matter at hand between Hachette and Amazon may be of vital importance to those two companies, but Hachette didn't pull its books from sale while it negotiated new terms.
Amazon pulled them to try to use authors as leverage. Jun 03, · An unusually public battle is being waged between Amazon and one of America's top five publishers, Hachette. Why the rancor?
Here's what you need to know. 1.
What is Hachette? Although Hachette. The Aspect of Negotiation Between the Companies Amazon and Hachette. 2, words. 9 pages. The Impact of the Political Relationship Between North Korea and South Korea on Journalism.
36, words. 18 pages. Using the Transtheoretical Model to Determine the Relation Between Smoking and Infant Mortality Rates. Amazon vs Hachette The Amazon/Hachette debate is not just a negotiation, it’s a skirmish between the new world and the old.
The latest salvo comes in the form of a letter signed by a number of brand-name authors who support Hachette’s point-of-view.