Business Picks Up in Amazon/Publisher Feud

Hatchette will be the least of Amazon’s worries in the near future. If I were them, I would just try to wrap the spat up.

Why?

Because Simon and Schuster and News Corp has next when they come up for renegotiation. If  Amazon is already blocking pre-orders of books from names such as J.K. Rowling, Nicolas Parks and James Patterson, you know they will block Veronica Roth, Stephen King and any and everyone on the HarperCollins and Simon and Schuster rosters.

The way I see it may be a bit trite  and cliche but I promise you, if these publishers set it up the right way, they will win: Its always strength in numbers.th-1

 

Clearly, Simon and  Schuster and News Corp have been sitting in the cut, observing the Amazon/Hatchette spat. Make no mistakes about it. So with that said, I think that publishers should collaborate  and strong arm Amazon. They better, because what Amazon is going for is a larger percent of the retail price. If that happens, that could mean lower fees for authors. So what was once 25 percent of the publisher’s take on sales could be wittled down to 15 to less than 10 percent. Amazon on the other hand, will continue to win because by getting a bigger chunk of the retail price, the mega retailer can discount more while retaining the profit.

If I were these publishers, I would create my own ebook biz and not sell ANYTHING to Amazon. By doing this, publishers and authors can sell directly to the consumers. Look at all of the music artists starting their own “labels”. Thanks to itunes and even Napster before them, the only value that a record label has now is management and marketing.  It’s the same thing going on in publishing right now. There is no need for the middle man.

Another thing that the publishers can do is revise their relationship with Apple. Before the Justice Department popped Apple and publisher for collusion,  Apple took a 30 percent cut of each e-book sold through iTunes and their ibookstores.  Another option is to collab with them again and maybe appeal the Justice departments’ decision. The way I see it is Amazon is trying to make the publishers be in collusion with them. The difference is Apple was at least trying to hide their greed.

The bottom line is the outcome of this feud will change the landscape of literature as we know it. Its worth it for the publishers to come together and plan.round-two-amazon-vs-publishers-1

So what do you think the next move should be and Why? I would love to read your opinions on here or you can hit me up on my facebook (www.facebook.com/ jannelle1) or tweet me @jannelle12 directly or you can sound off in the comments section here on Straight No Chaser

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One thought on “Business Picks Up in Amazon/Publisher Feud”

  1. A letter to our customers:
    Amazon has found itself involved in a commercial dispute with the book publisher Hachette, which owns Little Brown, Grand Central Publishing, and other familiar imprints. These sorts of disputes happen all the time between companies and they are usually resolved in a corporate back room.
    But in this case, Hachette has done something unusual. It has directly targeted Amazon’s customers in an effort to force the retailer to agree to its terms.
    For the past month, Hachette has been:
    –Boycotting the online retail platform, refusing to allow pre-orders on its books, forcing Amazon to state that they are “unavailable”.
    –Keeping the prices of many of its authors’ books so high that they are unattractive to customers.
    –Slowing the delivery of thousands of its books to Amazon, forcing the retailer to state that delivery will take as long as several weeks on most titles.
    As a retailer – which is only too willing to sell books published by Hachette – we feel strongly that no publisher should block the sale of books or otherwise prevent or discourage readers from ordering or receiving the books they want. It is not right for Hachette to single out a retailer, which does not want to be involved in any dispute, for selective retaliation. Moreover, by inconveniencing and misleading its former readers with unfair pricing and delayed delivery, Hachette is forcing Amazon to contradict its written promise to be “Earth’s most customer-centric company.”
    All of us supported Hachette from when we were kids. We cheered Hachette on. Many of our literary choices have made the publisher richer. We have made Hachette many millions of dollars and over the years have contributed so much, free of charge, to the publisher by way of cooperation, joint promotions, reviews and blog contributions. This is no way to treat a business partner. Nor is it the right way to treat your friends. Without taking sides on the contractual dispute between Hachette and Amazon, we encourage Hachette in the strongest possible terms to stop harming the livelihood of the authors on whose backs it has built its business. None of us, neither readers, authors, or retailers, benefit when books are held captive. (We’re not alone in our plea: both Techcrunch and Techdirt, which rarely report on the same things, have roundly condemned Hachette’s corporate behavior.)
    We call on Hachette to resolve its dispute with Amazon without further hurting authors and without blocking or otherwise delaying the sale of books to its readers.
    We respectfully ask you, our loyal customers, to email Tim Hely-Hutchinson, Chief Executive of Hatchette UK, at tim.hely-hutchinson@hatchette.co.uk, and tell him what you think. He says he genuinely welcomes hearing from readers and claims to read all emails from this account. We hope that, retailer and customers together, we will be able to change his mind.

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