Update: Amazon retaliates against big publishing’s defiance
The move by three of New York’s big six conglomerate publishers — Simon & Schuster, the Hachette Book Group, and HarperCollins – to stand up to Amazon’s drastic discounting demands took a perverse twist yesterday when Amazon did what it does: act thuggish when it’s time to negotiate. As a report by Michael Cader at Publisher’s Lunch and a Motoko Rich story from the New York Times detail, Amazon responded to the three publishers delaying e-book releases of their big titles with an act of deliberate retribution: by announcing it was discounting those very titles still further to customers who preorder them now — to $7.99.
Meanwhile, the media and various e-gurus seem to be getting what Moby has been saying all long (even in our headlines, no less) — that this isn’t a war about pricing as much as it is about standing up, finally, to Amazon.com and its destructive behavior towards the entire industry. Even USA Today — not usually known for insightful reportage on the book industry — runs a story today quoting Publishers Weekly reporter Jim Milliot stating the obvious:
The e-reader saga is turning into a businessthriller, as publishers and consumer electronics companies try to stop Amazon from amassing more power in this fast-growing field. It broke the digital market wide open in 2007 when it released the Kindle and offered thousands of e-books, including best sellers, priced at $10.
Publishers “don’t want Amazon to be the only game in town,” says Jim Milliot, senior editor at Publishers Weekly. “They view e-books and e-book readers as inevitable, but they don’t really know how it’s going to shake out.”
And revered guru Mike Shatzkin gets to the idea too, albeit a little late. In a post at his blog, he says it wasn’t until HarperCollins followed up with its policy, two days after Simon & Schuster and Hachette, that “the penny dropped for me”:
So this is really about the agents and publishers trying to take control of ebook pricing, and value perception, back from Amazon. Some further evidence of that comes from the reaction of Len Riggio, Chairman of Amazon competitor Barnes & Noble (vendors of Kindle competitor Nook) who is reported in the Journal piece to be quite comfortable with this tactic, which the Journal characterizes as “in keeping with the long-held practice of issuing paperback editions after the initial hardcover.”
Shatzkin is the first, however, to voice something else people have begun mumbling about behind the scenes : the question, Where’s Random House? So far, there’s “no word from Random House. Random House is particularly interesting since their new key executive decision-maker, Madeline McIntosh, just returned to them from Amazon.”
Well, Random’s ticklish position doesn’t change what MobyLives has been saying from the start — that this is about industry leaders taking a stand against Amazon. It should be no surprise that Amazon has reacted exactly as it always does: with an in-your-face fuck you. What comes after that, in an industry not known for sticking together against even obviously stupid and destructive policies such as Amazon’s, may be what’s surprising.





Some interesting (at least to me - it may not be news to you) facts:
title - credit derivatives/tavakoli (047141266X) hardcover (retails at $85) - amazon discounts hardcover 32% ($57.44) kindle price is $51.63 (39% off hardcover retail)…in addition, they offer an upgrade (read, search, and annotate every page online) for $8.50 - although this upgrade only exists with amazon in the cloud.
Another book - from 1998 - Information Rules - hardcover (retails at $38) discounted 34%=$25.08….kindle price is $22.57…it looks like they simply take roughly 10% off of the discounted hardcover price for these kindle editions.
just for fun - Tree of Smoke - Denis Johnson - paperback is $6.10 right now - kindle edition is $9.99……
This betrays their agenda and makes me think that now is the time for publishers to simply withhold the new kindle editions entirely and wage PR campaign to readers about why this is necessary.
I suppose that is easier said than done and may be ridiculously naive - since publishers can likely not exist without Amazon (that may be the entire “problem” - and maybe that is what should be addressed) and, not being a publisher, I wonder what this all means and what possible retaliation would be involved. I suppose it is similar to Costco not selling coke for a few weeks as they fought about pricing in November. It is settled now but I wonder who “won”. Coca Cola products are back at Costco.
My suspicion is that Amazon has been holding the publishers hostage (a la the chains, to a lesser extent, previously) for some time now.
The dangers of an all powerful Amazon need to be exposed (more naiveté perhaps) and it should be demonstrated that it may seem to be THE sacred place for the consumer but there is a price to be paid that is arguably much more costly than the consumer’s bottom line. It is short term savings with long term ramifications that may be much more costly. Call me Don Quixote. (Penguin Classic $9.36 for kindle edition OR paperback - 28% off retail).
Amazon UK can be amazingly inefficient. They currently misrepresent the Recommended Retail Price of my book as £20 more than it actually is, and claim that they have discounted by £4.27 when they are actually overcharging by £15.83. Nothing seems to persuade them they have made a mistake, although by misrepresenting a price like this they are in breach of UK law. Not a good company to deal with.