What will have happened by the time I finish typing this post? Things seem to move so quickly. My update on the Amazon and Macmillan story will be old news by now, but here is my attempt at a follow-up.
Adding further intensity to the Amazon and Macmillan storm, Hachette Book Group sided with Macmillan, as can be seen in this letter from Hachette CEO David Young. He explains the reasoning behind pursuing the “agency model” and corrects (as Macmillan has) the erroneous view that publishers support the agency model because they will make more money from it. “We’re taking the long view on e-book pricing, and this new model helps protect the long-term viability of the book marketplace.”
Hachette’s move is also discussed in this article in the Christian Science Monitor. I would say that there is a lot more to the issue than the perception that Macmillan “doesn’t like” Amazon’s pricing policy and that Amazon “doesn’t want to listen to any more complaints from the suits over at Macmillan.” But I do appreciate the Monitor’s concern for how readers feel about the situation. On that note, if it is true that “It’s not yet clear what Amazon customers believe about the whole kerfuffle,” then that dispels the assumption that Kindle owners would be aghast at the thought of paying more than $9.99 for a book.
In this related article, the Monitor brings to light the concerns of authors. I heartily feel for Ms. Meyers, who fears that Amazon’s boycott of Macmillan will hurt her book sales. I understand her situation, yet I would say that her worries point to a significant part of the problem: Amazon’s clout. Should one bookseller have the power to single-handedly cripple book sales and successes?
As it is, the storm has calmed somewhat. Amazon has relented in its banishment of Macmillan books, as reported in this New York Times article. But there is much more ahead. Another article from the Times, “The Fight Over Who Sets Prices at the Online Mall,” discusses the Leegin Creative Leather Products v. PSKS case and explores how the Supreme Court’s ruling in that case affects relationships between manufacturers and retailers. That Amazon and other retailers are seeking ways to alter aspects of the ruling indicates that much remains to be said and done in this pricing power struggle.
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My appreciation goes to the following for their reporting:
Dennis Johnson of MobyLives
Matthew Shaer and Marjorie Kehe of the Christian Science Monitor
Brad Stone and Motoko Rich of the New York Times
