Amazon Kindle exec calls Hachette battle ‘rare'; downplays ebook subscription concern

[Lin2412]

In addressing the battle with Hachette Book Group over e-book prices, Grandinetti, who previously has been called the most influential person in publishing, said the only surprising thing about this case was how the disagreement became so public.

Now with the dispute between Amazon and Hachette Book Group settled, and a multi-year agreement in place, Grandinetti said such public battles are “rare” and he looks forward to an era of “focusing on growing the business,” according to the AP.

One way for Amazon to grow its book publishing business is by experimenting with new business models. One of its most recent efforts include the roll-out of Kindle Unlimited, which allows customers to pay $10 a month to access a library of thousands of book titles that can be downloaded for free.

Some authors have claimed the subscription service results in fewer sales, and say they dislike having to make their e-books exclusive to Amazon in order to participate. GigaOm reports that Grandinetti dismissed these concerns, saying that the program is helping authors achieve earnings that have doubled since the program’s launch in July.

(Original Article by Tricia Duryee via GeekWire)

[GA Russell]

"Some authors have claimed the subscription service results in fewer sales, and say they dislike having to make their e-books exclusive to Amazon in order to participate."

That reminds me of the old joke of the two old women having lunch. The first says, "The food here is terrible." And the second says, "Yes, and such small portions!"

[pwalker8]

I think the key there is "public" battles. Amazon isn't use to having to justify their actions in public and didn't enjoy having the light shined on their negotiating tactics. I'm thinking that they haven't learned the lesson that what they say publicly can have a negative long term effect. A more savy exec would have said something like "we understand their concerns and will continue to work with them in that regard, but we think this will be a long term win for authors. It's only been in effect for six months". Having your concerns dismissed with a wave of the hand never sits well with people.

[murg]

Originally Posted by pwalker8

I think the key there is "public" battles. Amazon isn't use to having to justify their actions in public and didn't enjoy having the light shined on their negotiating tactics. I'm thinking that they haven't learned the lesson that what they say publicly can have a negative long term effect. A more savy exec would have said something like "we understand their concerns and will continue to work with them in that regard, but we think this will be a long term win for authors. It's only been in effect for six months". Having your concerns dismissed with a wave of the hand never sits well with people.

What long term negative effect did the 'bad publicity' have?

Amazon is doing quite well. They have contracts with the publishers, have programs that are competing with the publishers for content quite well.

[SteveEisenberg]

Originally Posted by murg

What long term negative effect did the 'bad publicity' have?

It wasn't bad publicity on this board, because a plurality of posters took Amazon's side. But I don't think there's a question about Amazon having received bad publicity in the wider world.

As to long-term effects of bad publicity, I think discount retailers often withstand it without great harm.

This may be a bigger threat than bad publicity:

https://www.jet.com/#/

Does anyone know if Jet is going to sell eBooks? I know they plan to sell paper books.

[murg]

Originally Posted by SteveEisenberg

It wasn't bad publicity on this board, because a plurality of posters took Amazon's side. But I don't think there's a question about Amazon having received bad publicity in the wider world.

I think it's more of a case that most people didn't support Hachette, rather than supporting Amazon.

What's been lost in this is the fact that it wasn't necessary to take sides, you could be against one side without being for the other.

[pwalker8]

Originally Posted by murg

What long term negative effect did the 'bad publicity' have?

Amazon is doing quite well. They have contracts with the publishers, have programs that are competing with the publishers for content quite well.

The practical effects of good publicity and bad publicity can be hard to measure, but certainly bad publicity is rarely a good thing. In this particular case, the real issue is that it was needless, and thus indicates a degree of either arrogance or lack of understanding. In either case, that sort of thing has a way of catching up with a company. At the very least, he risks sabotaging his own program as angry authors pull out of it, making it more difficult to compete with other subscription services.

[murg]

Originally Posted by pwalker8

The practical effects of good publicity and bad publicity can be hard to measure, but certainly bad publicity is rarely a good thing. In this particular case, the real issue is that it was needless, and thus indicates a degree of either arrogance or lack of understanding. In either case, that sort of thing has a way of catching up with a company. At the very least, he risks sabotaging his own program as angry authors pull out of it, making it more difficult to compete with other subscription services.

What angry authors?

The Hachette authors? They aren't directly on Amazon.

The independents? They loved it, all that money not being spent on Hachette was being spent somewhere else.

The Authors United crackpots? More like they pissed off their readers.

[pwalker8]

Originally Posted by murg

What angry authors?

The Hachette authors? They aren't directly on Amazon.

The independents? They loved it, all that money not being spent on Hachette was being spent somewhere else.

The Authors United crackpots? More like they pissed off their readers.

The numerous ones who have been complaining about KU cutting into their sales. We had a whole thread about it.

[soulfuldog]

Originally Posted by pwalker8

The numerous ones who have been complaining about KU cutting into their sales. We had a whole thread about it.

That has absolutely nothing to do with possible bad publicity though?

[murg]

Originally Posted by pwalker8

The numerous ones who have been complaining about KU cutting into their sales. We had a whole thread about it.

Oh. So, completely unrelated to publicity.

You might as well brought up the authors that complain that they're owed a living for being an author, just because they're an author. And how dare people not buy their over-priced creations.

[pwalker8]

Originally Posted by murg

Oh. So, completely unrelated to publicity.

You might as well brought up the authors that complain that they're owed a living for being an author, just because they're an author. And how dare people not buy their over-priced creations.

But it has everything to do with the other part of the article which had him dismissing the concerns of authors over KU. How dare these uppity indie authors complain about getting the money they get paid slashed so Amazon can make a few extra bucks on a subscription service.

Amazon got a lot of support by the indies when Amazon was going to war with Hachette. Amazon may not get that support next time.

[murg]

Originally Posted by pwalker8

But it has everything to do with the other part of the article which had him dismissing the concerns of authors over KU. How dare these uppity indie authors complain about getting the money they get paid slashed so Amazon can make a few extra bucks on a subscription service.

Amazon got a lot of support by the indies when Amazon was going to war with Hachette. Amazon may not get that support next time.

If I remember the author's comments (re Amazon KU), they were basically: I've noticed that my overall revenue is down for the books I have in KU, so I pulled them. I don't remember any major rancour towards Amazon.

And any support the independents gave Amazon during this time was pretty much a non-factor. The independents were on Amazon anyways, and since they weren't being published by the Hachette, there really wasn't much to support or not support.

[DuckieTigger]

Originally Posted by murg

If I remember the author's comments (re Amazon KU), they were basically: I've noticed that my overall revenue is down for the books I have in KU, so I pulled them. I don't remember any major rancour towards Amazon.

It is more about a long term and short term effect. To pull books after such a short time that KU is in place might be mistake long term. It takes time to build up readers that will follow you. I would not be very pleased when I read a few books from one author and next time I check to get another book it is gone out of KU. Throwing a bone and then taking it away just in time so I cannot get it is not nice.

I just noticed that gift subscriptions of KU are available - that sounds like a great idea instead of gifting a book (hit or miss) or a gift card.