Amazon was highest bidder in Hocking auction

wallcraft · 04-02-2011, 02:58 PM

Quote:

In its most aggressive move yet into territory traditionally occupied by the major New York houses, the Seattle-based e-retailer took part last week in a heated auction for four books by self-published bestselling novelist Amanda Hocking. Executives at several houses said they knew of no other instance in which the company had competed with major publishers for a high profile commercial author.

Quote:

St. Martin's Press ended up winning the auction, paying $2 million for the series of four novels, but Amazon actually made the highest offer of the six bidders, according to insiders.

Amazon had insisted on exclusivity for the e-book edition, said a high level publishing executive familiar with the deal. That made the offer less attractive to the author and her literary agent.

Amazon is clearly serious about competing directly with publishers in all ways that make sense financially.

OtterBooks · 04-02-2011, 05:55 PM

I wonder if they've gotten they idea in their heads to become a full scale publishing house, not just for a few exclusives here and there, and maybe for paper books as well. They could even give up the notion of exclusivity in order to attract writers.

Seeing as how publishers' wholesale pricing/restrictions on ebooks has been a point of contention for Amazon, they could just decide to break into the industry on their own, and they certainly have the resources to compete for authors.

Giggleton · 04-02-2011, 08:59 PM

That's interesting. But it's expected for Amazon to become a publisher/marketer. Exclusivity is an archaic business model though, and yet Amazon, supposedly forward thinking? continues to practice it???

It would seem to me that opening up the Kindle to epub could have saved the millions Amazon offered to Hocking, Amazon could then simply market the hell out of her books, purchase the first of the series, load it onto new Kindles when they are ordered, give them away to the first 50,000 that request one etc... etc...

There really is no need to purchase exclusivity. I'm marking this one up to a mistake on Amazon's part, they've been accumulating quite a few recently.

CHunter_Author · 04-02-2011, 09:06 PM

Yeah, they mucked up with the exclusivity.

Catlady · 04-02-2011, 09:39 PM

From Amazon's perspective, of course they'd want exclusivity. Why would they even bother with a deal that wasn't exclusive?

OtterBooks · 04-02-2011, 10:06 PM

Quote:

Originally Posted by Catlady

From Amazon's perspective, of course they'd want exclusivity. Why would they even bother with a deal that wasn't exclusive?

They'd still have the revenue from sales just like any other publisher who bought the rights, I would think. Sure they would gain more from exclusivity in addition to that, but their demand left them with neither.

SensualPoet · 04-02-2011, 10:18 PM

Well, I'm guessing Amazon will do very well just selling as the agent for St Martin's in the Kindle format -- probably half the Hocking ebooks will flow through Amazon anyway -- and without investing a penny upfront.

Just speculating, but perhaps Amazon was thinking this was a great opportunity to expand into the "youth segment" which is Hocking's prime audience, selling them Kindles and banking on them enjoying reading and wanting more.

Andrew H. · 04-02-2011, 11:28 PM

Quote:

Originally Posted by SensualPoet

Well, I'm guessing Amazon will do very well just selling as the agent for St Martin's in the Kindle format -- probably half the Hocking ebooks will flow through Amazon anyway -- and without investing a penny upfront.

Just speculating, but perhaps Amazon was thinking this was a great opportunity to expand into the "youth segment" which is Hocking's prime audience, selling them Kindles and banking on them enjoying reading and wanting more.

I'm not sure that this would really be an "expansion," since the vast majority of Hocking's books (over 100,000 per month(!)) are sold on amazon anyway.

I think that amazon was both interested in the money, but maybe just as much in being able to have an exclusive deal with someone who is so well known to ebook fans.

OtterBooks · 04-03-2011, 01:52 AM

Quote:

Originally Posted by SensualPoet

Well, I'm guessing Amazon will do very well just selling as the agent for St Martin's in the Kindle format -- probably half the Hocking ebooks will flow through Amazon anyway -- and without investing a penny upfront.

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.

mickeyfinn · 04-03-2011, 02:08 AM

Amazon is run by swine. They're lined up at the trough right now and eating their fill.

I'd watch for a consortium of publishers to unite against Pigazon in bidding for independent authors.

There's only one reason these porcine wanna be publishers are insisting on exclusive rights to books. They want complete control to access of popular books.

Can't you feel it? There's something REALLY wrong with this.

I will NEVER buy a bound book or an ebook from Amazon. I'll NEVER own a Kindle.

Why anyone supports Amazon financialy is beyond me.

Kali Yuga · 04-03-2011, 06:55 AM

Quote:

Originally Posted by OtterBooks

I wonder if they've gotten they idea in their heads to become a full scale publishing house, not just for a few exclusives here and there, and maybe for paper books as well....

If that's what they were going for, I'd think they would actually launch a publishing house. They won't get far by just cherry-picking authors here and there.

I don't view them as willing to put in the resources to take down several multi-billion dollar companies that also provide them with most of their books.

Quote:

Originally Posted by OtterBooks

They could even give up the notion of exclusivity in order to attract writers.

Kali Yuga · 04-03-2011, 07:00 AM

Quote:

Originally Posted by OtterBooks

....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.

They'll probably make as much, possibly more, money by not acting as her publisher.

As the publisher they wouldn't get that much bigger a slice of the pie, and would have lots of costs including the advance and editing.

The deal with Amazon wouldn't make sense to Hocking, who says she wanted to work with a publisher to test out the traditional advantages (advances, editors, marketing). Amazon has none of that, so why bother?

Amazon does stuff like the occasionally to make a big splash and advance the brand.

doreenjoy · 04-03-2011, 07:05 AM

Amazon is certainly getting a lot of free press out of their bid, so they come out a winner even without getting the exclusivity they sought.

DiapDealer · 04-03-2011, 08:46 AM

Quote:

Amazon is run by swine. They're lined up at the trough right now and eating their fill.

I love bacon.

Quote:

Why anyone supports Amazon financialy is beyond me.

I want to buy ebooks... They sell ebooks... I'm so ashamed.

Giggleton · 04-03-2011, 08:55 AM

Amazon sells the expression of ideas, keep that in mind at all times.

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04-02-2011, 05:55 PM	#2
OtterBooks Wizard Posts: 1,262 Karma: 2979086 Join Date: Nov 2010 Device: Kindle 4, iPad Mini/Retina	I wonder if they've gotten they idea in their heads to become a full scale publishing house, not just for a few exclusives here and there, and maybe for paper books as well. They could even give up the notion of exclusivity in order to attract writers. Seeing as how publishers' wholesale pricing/restrictions on ebooks has been a point of contention for Amazon, they could just decide to break into the industry on their own, and they certainly have the resources to compete for authors.

04-02-2011, 08:59 PM	#3
Giggleton Banned Posts: 1,687 Karma: 4368191 Join Date: Jan 2011 Location: Oregon Device: Kindle3	That's interesting. But it's expected for Amazon to become a publisher/marketer. Exclusivity is an archaic business model though, and yet Amazon, supposedly forward thinking? continues to practice it??? It would seem to me that opening up the Kindle to epub could have saved the millions Amazon offered to Hocking, Amazon could then simply market the hell out of her books, purchase the first of the series, load it onto new Kindles when they are ordered, give them away to the first 50,000 that request one etc... etc... There really is no need to purchase exclusivity. I'm marking this one up to a mistake on Amazon's part, they've been accumulating quite a few recently.

04-02-2011, 09:06 PM	#4
CHunter_Author Zealot Posts: 118 Karma: 503896 Join Date: Jan 2011 Location: Bronx, NY Device: iPhone	Yeah, they mucked up with the exclusivity.

04-02-2011, 09:39 PM	#5
Catlady Grand Sorcerer Posts: 7,418 Karma: 52613881 Join Date: Oct 2010 Device: Kindle Fire, Kindle Paperwhite, AGPTek Bluetooth Clip	From Amazon's perspective, of course they'd want exclusivity. Why would they even bother with a deal that wasn't exclusive?

04-02-2011, 10:18 PM	#7
SensualPoet Wizard Posts: 2,302 Karma: 2607151 Join Date: Nov 2009 Location: Toronto Device: Kobo Aura HD, Kindle Paperwhite, Asus ZenPad 3, Kobo Glo	Well, I'm guessing Amazon will do very well just selling as the agent for St Martin's in the Kindle format -- probably half the Hocking ebooks will flow through Amazon anyway -- and without investing a penny upfront. Just speculating, but perhaps Amazon was thinking this was a great opportunity to expand into the "youth segment" which is Hocking's prime audience, selling them Kindles and banking on them enjoying reading and wanting more.

04-03-2011, 02:08 AM	#10
mickeyfinn Banned Posts: 33 Karma: 650 Join Date: Mar 2011 Device: none	Amazon is run by swine. They're lined up at the trough right now and eating their fill. I'd watch for a consortium of publishers to unite against Pigazon in bidding for independent authors. There's only one reason these porcine wanna be publishers are insisting on exclusive rights to books. They want complete control to access of popular books. Can't you feel it? There's something REALLY wrong with this. I will NEVER buy a bound book or an ebook from Amazon. I'll NEVER own a Kindle. Why anyone supports Amazon financialy is beyond me.

04-03-2011, 07:05 AM	#13
doreenjoy 01000100 01001010 Posts: 1,889 Karma: 2400000 Join Date: Mar 2009 Device: Polyamorous	Amazon is certainly getting a lot of free press out of their bid, so they come out a winner even without getting the exclusivity they sought.

04-03-2011, 08:55 AM	#15
Giggleton Banned Posts: 1,687 Karma: 4368191 Join Date: Jan 2011 Location: Oregon Device: Kindle3	Amazon sells the expression of ideas, keep that in mind at all times.

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