MobileRead Forums - View Single Post - Amazon makes a direct offer to Hachette authors: 100% ebook royalties

Top100EbooksRank · 07-15-2014, 03:14 AM

http://www.thepassivevoice.com/07/20...ds-of-silence/

What does the timeline tell us?

1. Hachette did not negotiate in good faith before the end of the contract.

They didn’t negotiate at all. Amazon and Hachette agree on this crucial point. The first Hachette offer was in April. Amazon says the original contract ran out in March and Hachette hasn’t denied it. In my view, the party that makes no attempt to negotiate during the term of the original contract is the instigator of the stand-off.

2. Hachette knew for months that their authors were being harmed and they did nothing.

Sullivan noticed that the usual Amazon discounts on his titles were gone on February 7. He saw the inventory issues on March 9. He let Hachette know about both issues. At that point Hachette had let their contract expire without so much as a counter-offer.

. . . .

4. Hachette was able to pull off a complex, multi-million dollar acquisition of a smaller publisher, but unwilling to fund either of Amazon’s offers to help the affected authors.

The publishing half of Perseus was estimated to have revenues in the $100 million range. That’s a pretty big deal in the publishing world.

5. Since the dispute became public, Hachette has essentially abandoned the negotiations in favor of a concerted public relations campaign.

Hachette’s last offer was in May around the time the affair became public. Amazon sent them another offer on June 5. Hachette has orchestrated a high-profile publicity campaign with big name authors, a popular TV host, and the publishing industry press taking up Hachette’s cause. Hachette has even enlisted the New York Times to play stenographer for them.

6. Hachette has a powerful incentive to drag this out.

To achieve its goal, Hachette needs to delay the final agreement until late 2014 or early 2015. That is the earliest time they will be able to conclude an agreement with Amazon that restricts Amazon’s ability to discount ebooks. Moreover, developments in Apple’s ongoing appeal could substantially impact Hachette’s negotiating position. An Apple loss or settlement would make reaching an agency deal (with no discounting) almost impossible because Amazon is not going to agree to let Apple underprice them on ebooks.

07-15-2014, 03:14 AM	#80
Top100EbooksRank Banned Posts: 304 Karma: 6102528 Join Date: Mar 2012 Device: Kindle	http://www.thepassivevoice.com/07/20...ds-of-silence/ What does the timeline tell us? 1. Hachette did not negotiate in good faith before the end of the contract. They didn’t negotiate at all. Amazon and Hachette agree on this crucial point. The first Hachette offer was in April. Amazon says the original contract ran out in March and Hachette hasn’t denied it. In my view, the party that makes no attempt to negotiate during the term of the original contract is the instigator of the stand-off. 2. Hachette knew for months that their authors were being harmed and they did nothing. Sullivan noticed that the usual Amazon discounts on his titles were gone on February 7. He saw the inventory issues on March 9. He let Hachette know about both issues. At that point Hachette had let their contract expire without so much as a counter-offer. . . . . 4. Hachette was able to pull off a complex, multi-million dollar acquisition of a smaller publisher, but unwilling to fund either of Amazon’s offers to help the affected authors. The publishing half of Perseus was estimated to have revenues in the $100 million range. That’s a pretty big deal in the publishing world. 5. Since the dispute became public, Hachette has essentially abandoned the negotiations in favor of a concerted public relations campaign. Hachette’s last offer was in May around the time the affair became public. Amazon sent them another offer on June 5. Hachette has orchestrated a high-profile publicity campaign with big name authors, a popular TV host, and the publishing industry press taking up Hachette’s cause. Hachette has even enlisted the New York Times to play stenographer for them. 6. Hachette has a powerful incentive to drag this out. To achieve its goal, Hachette needs to delay the final agreement until late 2014 or early 2015. That is the earliest time they will be able to conclude an agreement with Amazon that restricts Amazon’s ability to discount ebooks. Moreover, developments in Apple’s ongoing appeal could substantially impact Hachette’s negotiating position. An Apple loss or settlement would make reaching an agency deal (with no discounting) almost impossible because Amazon is not going to agree to let Apple underprice them on ebooks.