Amazon destroys the book industry again

[stonetools]

Frankly, when people say, "Why don't publishers just open an ebook store to compete with Amazon, " they betray a kind of naivete about business.
First of all, division of labor. The skills it takes to be a major publishng house are mostly different from being a major retailer. Secondly, to compete with Amazon, you have to do what Amazon does: and that ain't easy and that ain't cheap .Among other things it involves mucho infastructure: servers, engineers, bandwidth, software, and techncal know how-some of which, like 1-click buying, is patented.
IOW, opening a website somewhere on the Internet ain't competing with Amazon, by a long shot. You notice that Apple, with every advantage in the world, is having a tough time making iinroads agaionst Amazon. What makes you think publishers can do any better?

[Kali Yuga]

Originally Posted by HarryT

It forbids discounting by the retailer; it does not mean that everyone has to sell it at the same price; the publisher is entirely free to set different prices at different retailers.

In the US, setting different prices for different retailers on any basis other than volume would almost certainly be a violation of the Robinson-Patman Act.

Even if it was strictly legal, retailers would unleash the legal hounds, pull titles and otherwise punish the publishers.

Penguin already has its own store. I haven't checked it carefully, but I seriously doubt they are undercutting the retailers.

UK prices could be (legally) different from US prices for many reasons including VAT, sales tax, currency fluctuations, demand &c.

[ProfCrash]

I don't see Apple as competing with Amazon. Apple is content with selling devices because they know that they have a built in market that will buy the next latest and greatest when it comes out.

One kid sold a Kidney to buy and IPad and IPhone in Chinca. I heard a report that having Apple products is such a status symbol in Spain that people who are unemployed are finding ways to buy the IPhone and keep it active. God knows that there are people in the US who are inline to buy the next latest and greatest iteration even when the model they have is only one year old.

Apple is well aware of its hold in the market place. It does not need to compete with Amazon. There is plenty of evidence that Steve Jobs and other Apple executives are not worried about the e-reader market and that they really have not done much to promote IBooks. The difference between Apple and Sony is that Apple is a strong enough niche market that people will pay for the devices while Sony seems to have lost that magic. Neither are focused on selling books, only devices with a subtle nod to the books.

If Apple wanted to compete with Amazon and BN they would not have allowed apps for people to read their competitors books on their devices. So people buy the tablets, laptops, and Touches and are happy. Apple makes a killing and is happy.

If Apple wanted to sink the money into selling e-books and competing with Amazon in that area, I think we would see an interesting battle. I don't think Apple wants to compete in that arena because I don't think Apple thinks it is worth the money to them to compete.

BN is a different story. Kobo is a different story. They have to find a way to compete with Amazon if they want to survive. They do not make enough on their devices to be able to ignore the e-book market. Sony seems to have tried to make enough money on the devices while not focusing on the book store and has fallen from the leader to third or even fourth place in the device market. BN and Kobo cannot afford to lose more ground to Amazon.

[BearMountainBooks]

Originally Posted by stonetools

Frankly, when people say, "Why don't publishers just open an ebook store to compete with Amazon, " they betray a kind of naivete about business.
First of all, division of labor. The skills it takes to be a major publishng house are mostly different from being a major retailer. Secondly, to compete with Amazon, you have to do what Amazon does: and that ain't easy and that ain't cheap .Among other things it involves mucho infastructure: servers, engineers, bandwidth, software, and techncal know how-some of which, like 1-click buying, is patented.
IOW, opening a website somewhere on the Internet ain't competing with Amazon, by a long shot. You notice that Apple, with every advantage in the world, is having a tough time making iinroads agaionst Amazon. What makes you think publishers can do any better?

Because publishers have the name-brand books. I didn't say it would be easy. I said it made business sense to compete in that way.

Sourcebooks (a small publisher) just announced a direct subscription service via their site.

Baen sells direct. Baen is constantly trying new things.

The old models get taken out by the new.

[fjtorres]

Publishers used to sell direct in decades past.
They even sold bundles and grab-bags at heavy discount instead of just pulping them.
Several published newsletters and catalogs and most paperbacks carried listings in the back for other titles by the same author or comparable ones from the same genre.
So, I wouldn't say that expecting publishers doing what publishers used to do is a priori unreasonable.

Unless one starts with the assumption that today's big publishers can do no wrong.

[Synamon]

I buy my airline tickets online directly from the airline, the tea I like directly from Bigelow, goofy golf shorts for my husband from Loudmouth, etc., so it was a natural thing for me to go looking for publisher sites selling ebooks directly when I first got into ebooks. Some of them do have websites, but navigating them is a nightmare and they are definitely not geared to ebooks. On the two I tried I couldn't even do a search just for ebooks. I can't understand why the big publishers don't have a significant presence on the net for selling ebooks, it seems like a missed opportunity to me. Actually I take that back, their non-existent presence has to be intentional, which highlights their indifference or possibly even hostility towards ebooks.

[BearMountainBooks]

Originally Posted by Synamon

I buy my airline tickets online directly from the airline, the tea I like directly from Bigelow, goofy golf shorts for my husband from Loudmouth, etc., so it was a natural thing for me to go looking for publisher sites selling ebooks directly when I first got into ebooks. Some of them do have websites, but navigating them is a nightmare and they are definitely not geared to ebooks. On the two I tried I couldn't even do a search just for ebooks. I can't understand why the big publishers don't have a significant presence on the net for selling ebooks, it seems like a missed opportunity to me. Actually I take that back, their non-existent presence has to be intentional, which highlights their indifference or possibly even hostility towards ebooks.

That sounds like Goodreads. They have a HUGE following by readers, so I uploaded one of my books for sale there. Then I decided to see how long it would take me to find it. I started searching...looking for genre as a starting place. Hmm. Ebooks. Okay, got that. And now...I can sort by popularity or price...

Long ways to go. I think they will get there as will others. But in the meantime? Customers go where things work. Customers go where it's easy. And any site that is not easy enough to use such that the customer goes somewhere else...has a bad selling model.

[Kris777]

I guess if Tim Waterstone has Amazon Kindle or any other ebook reader...

[stonetools]

FWIW, the publishers are trying:

NEW YORK, May 6, 2011 /PRNewswire/ -- Bookish (www.bookish.com), a new digital platform for readers, is set to launch this summer it was announced today. Backed by Hachette Book Group, Penguin Group (USA), and Simon & Schuster, Bookish has been designed to provide readers -- from the most casual to the most dedicated -- with a personalized experience connecting them with their favorite authors and books through original editorial features, unique tools and more. The AOL Huffington Post Media Group is partnering with the site to engage users with Bookish content across the network's wide range of destination sites; AOL will provide advertising sales support for the new venture.

Editorially independent, Bookish will be a place for readers to find great content about books and authors from a variety of publishers. Bookish will highlight a wide range of genres and allow readers to find their next book as well as recommend books to each other.

LINK

Unfortunately, its a year later and the site hasn't launched. But they are active on Twitter.
Like I said, it aint easy.

[Kali Yuga]

Originally Posted by ProfCrash

I don't see Apple as competing with Amazon.

They're definitely in competition.

True, Apple makes money on devices rather than content. Amazon started out wanting to do both, but has almost certainly sided with content over devices. (That goes for ebooks, music and videos.)

However, if Apple wasn't competing with Amazon, they wouldn't have pushed iBooks, given the publishers exactly what they wanted (control over pricing) and wouldn't throw a hissy fit when ebooks contain links to Amazon titles.

Apple also doesn't make jack on the iTunes music store or video rentals, but they persist with it anyway. It keeps people on their curated platform.

Just because they have different goals doesn't mean they aren't targeting each other's business.

Originally Posted by ProfCrash

If Apple wanted to compete with Amazon and BN they would not have allowed apps for people to read their competitors books on their devices.

I don't think they could have gotten away with that.

Let's keep in mind that Apple has all but shut down apps that let you buy content directly from competitors, blocked ebooks that contain links to Amazon ebook purchase pages, and won't allow iBooks on anything other than a Mac OS.

As long as Apple is selling content and is using vendor lock-in, regardless of their overall goals, they're competing against Amazon, B&N, Kobo and anyone else who wants to sell you an ebook.

[SteveEisenberg]

Originally Posted by Kali Yuga

In the US, setting different prices for different retailers on any basis other than volume would almost certainly be a violation of the Robinson-Patman Act.

Maybe it is illegal, but I have heard of advertising allowances, and subsidies for preferential shelf placement, in deals between supermarkets and suppliers. If the publishers do what Mike Shatzkin tells them to do at his conventions, without otherwise conspiring, they might get away with similar-to-supermarket tactics.

Amazon's PR people might hesitate before going after suppliers for giving mom and pa shops a special deal. Or maybe Amazon would sue anyway. Every approach has risks.

[stonetools]

Apple is definitely competing with Amazon and not just in ebooks. As far as ebooks are concerned, a lot of folks here believe that Apple has failed with iBooks . However, its early days yet . Mike Shatzkin thinks iBooks may be third behind BN in terms of its share of the book market (10 % as opposed to Amazon (55%) and BN (25%).That's after 2 years.
In terms of innovation, there is a lot happening on iOs platform (iBooks Author,ITunes U, and enhanced ebook apps such as the Wasteland and the Fantastic Fying Books of Mr. Morris Lessmore.
I can see a future ebook market where Apple dominates the "premium" , innovative end of the ebook market and Amazon dominates the low priced "mass market" end. I think that's part of Apple's strategy.

[DiapDealer]

Originally Posted by stonetools

I can see a future ebook market where Apple dominates the "premium" , innovative end of the ebook market and Amazon dominates the low priced "mass market" end. I think that's part of Apple's strategy.

I'm pretty sure you just said; "Apple will dominate the whizbang/pretty ebook market." You're probably right, for what that's worth.

[mbovenka]

Originally Posted by HarryT

In the process, it made John D. Rockefeller the richest man in the world.

And adjusted for actual 'buying power', quite possibly the wealthiest man of all time.

[Ninjalawyer]

Originally Posted by stonetools

FWIW, the publishers are trying:



LINK

Unfortunately, its a year later and the site hasn't launched. But they are active on Twitter.
Like I said, it aint easy.

Actually, you said it was naive for people to even suggest that the publishers do this. Good thing some in the publishing industry evidently share that naivete.