Thread: Amazon was highest bidder in Hocking auction
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Old 04-03-2011, 01:44 PM   #24
CleverClothe
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Quote:
Originally Posted by OtterBooks View Post
Maybe, depending on what Amazon has to pay for it wholesale. I don't know what kind of deals publishers give them now, but the news I've read about previous wholesale prices wasn't very much in Amazon's favor. If Amazon didn't insist on exclusivity and the sales exceeded the advance, they would have profited no matter who sold it. The margin would have been even greater when bought through them, which considering their market share would be often.

Just seems like it was a bad move. My knowledge of the industry is pretty slim, so who knows. I don't know if this was the first time Amazon has made such an offer, or just the most publicized (or first I've heard of). I'll be curious to see if they repeat the offer with another big ticket author.

What's Amazon's ebook market share as it is? 70%? More? It doesn't seem worth the all-or-nothing gamble, when they are gonna get most of the retail sales anyway, so at least could have gotten a piece of the other 30% via wholesale. This is assuming sales adequately surpassed the advance, which appears likely.
St. Martin's Press is owned by Macmillan, so it is an Agency publisher. Amazon will be getting 30% of whatever sales come through its store. And St. Martin's Press will determine the price.

If Amazon had scored the publishing rights, it would get 70-85% (whatever they decide to pay Hocking) and it would determine the price of the books.

I think that last point is very important here.
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