Amazon offers indie authors reward for going exclusive

[HarryT]

Originally Posted by ProfCrash

Amazon dominates the US market. I read a report in the Guardian that said 75% of all e-readers in the UK were Kindles.

... and 95% of the readers being bought today in the UK are Kindles. At one point Sony dominated the UK market; they completely "blew it".

[rhadin]

Originally Posted by ProfCrash

I am sure that there are ways that Publishers can help. They can sell books using the same mechanisms to the different distributors but trumpet how much they like working with this particular business. Authors can be encouraged to send people to specific websites. Agressive facebook, twitter, and other social media campaigns.

It can be done, someone just has to do it.

Yes, I agree, it can be done. I think publishers can force the matter quite simply. They could refuse to sell both e and p books to Amazon at a discount or even at all. That might not be legal so my second suggestion is probably better.

My second suggestion is that they simply declare that their ebooks cannot be converted to or sold in any format other than ePub using, for example, the B&N-type DRM. Every ebookseller would have to sell only ePub ebooks with only that particular type of DRM. This would be procompetitive. In fact, I suspect that they could get a written waiver from the Department of Justice that permits them to agree to this standard because it would be consumer friendly.

If you take away Amazon's closed eco system, you force Amazon to compete on a more level playing field. Combine that with agency pricing, which is not under investigation (it is the collusion to impose agency pricing that is under investigation), and suddenly the marketplace changes dramatically.

[murraypaul]

Originally Posted by rhadin

Yes, I agree, it can be done. I think publishers can force the matter quite simply. They could refuse to sell both e and p books to Amazon at a discount or even at all. That might not be legal so my second suggestion is probably better.

My second suggestion is that they simply declare that their ebooks cannot be converted to or sold in any format other than ePub using, for example, the B&N-type DRM. Every ebookseller would have to sell only ePub ebooks with only that particular type of DRM.

Why?
Why is it their interests to do this?
To piss off by far their most important retail outlet, for what benefit?

[stonetools]

The publishers are on record as wanting a greater diversity of ebook retailers, and they have done something about it ( agency pricing). That got them in big trouble ith the DoJ. I dont think they are going to take any further collective action against Amazon.

FWIW I bet that they probably did think of collectively refusing to sell to Amazon but decided against it for legal and business reasons.

[HarryT]

Originally Posted by stonetools

FWIW I bet that they probably did think of collectively refusing to sell to Amazon but decided against it for legal and business reasons.

It would have been commercial suicide for them to have done that!

[J. Strnad]

I keep coming back to DRM as the main culprit. If publishers didn't insist on it, you'd have a collective of all other ebookstores (epub) vs. Amazon (mobi). You'd also get that dreadful Adobe Digital Editions out of the epub picture, which would be a major step in the right direction, for everything except library "borrowing" (which I'm still not sure is a viable concept for ebooks, from the publishers' point of view).

Publishers need to get over trying to control eyeballs. Yes, some people will read the books for free, but hey...some people have always read books without paying the publishers and authors! In fact, a heckuva lot of people have always done so! From lending/borrowing, to used bookstores, to yard sales...a lot of eyeballs read a lot of books without returning a penny to the authors and publishers. Yet when it comes to ebooks, publishers think that a free download is going to kill their business.

As for being assimilated and yielding to Amazon, it is not only painless, it's downright pleasurable! Maybe it's time to quit worrying about what they might do and look at what they do do and make the most of it. Yeah, maybe sometime in the future they'll try to make you eat broccoli, but that's when you take your stand and fight, not when things are going your way.

[Andrew H.]

Originally Posted by rhadin

Yes, I agree, it can be done. I think publishers can force the matter quite simply. They could refuse to sell both e and p books to Amazon at a discount or even at all. That might not be legal so my second suggestion is probably better.

It's not just illegal - it's blatantly, spectacularly, promiscuously illegal.

From Sec. 1 of the Sherman anti-trust act (15 USC Sec. 1)

Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal. Every person who shall make any contract or engage in any combination or conspiracy hereby declared to be illegal shall be deemed guilty of a felony, and, on conviction thereof, shall be punished by fine not exceeding $100,000,000 if a corporation, or, if any other person, $1,000,000, or by imprisonment not exceeding 10 years, or by both said punishments, in the discretion of the court.

Note that the penalty for a corporation violating this is a fine not to exceed $100 million. Individuals face a max of $1 million plus up to 10 years in prison.

There is a civil action available as well, which is often used as well, especially in marginal cases. But people do go to prison for this every year - here's a link to a case from this year involving a $550 million fine. http://www.financialfraudlaw.com/law...fine-ever/3266

My second suggestion is that they simply declare that their ebooks cannot be converted to or sold in any format other than ePub using, for example, the B&N-type DRM. Every ebookseller would have to sell only ePub ebooks with only that particular type of DRM. This would be procompetitive. In fact, I suspect that they could get a written waiver from the Department of Justice that permits them to agree to this standard because it would be consumer friendly.
[/quote]
I don't think that would fly, either. It would be really hard sell to convince the Justice Dept. that it was for the benefit of consumers to stop selling e-books in the format that 65% of consumers already use. And even more difficult to convince them that this wasn't aimed at Amazon, given their public statements and most recent (alleged) price fixing wrt agency.

DoJ: So you are doing this because you think formats should be more open?
Big 6: Yes.
DoJ: And this doesn't have anything to do with Amazon?
Big 6: No.
DoJ: Openness is so important to you that you are willing to cut off 65% of your customers.
Big 6: Yes, we are all about openness.

I just don't see that working at all. I see a combination in restraint of (Amazon's) trade. And I think the DoJ would, too.

If you take away Amazon's closed eco system, you force Amazon to compete on a more level playing field. Combine that with agency pricing, which is not under investigation (it is the collusion to impose agency pricing that is under investigation), and suddenly the marketplace changes dramatically.

I think you and I have different ideas of what a level playing field is, since you are basically suggesting that the Big 6 get together and render all of Amazon's devices obsolete overnight.

And you think that the DoJ would go along with it? Because it would be friendly to consumers?

[HarryT]

Originally Posted by Andrew H.

I think you and I have different ideas of what a level playing field is, since you are basically suggesting that the Big 6 get together and render all of Amazon's devices obsolete overnight.

Isn't this (the "Big 6" acting together is restraint of free trade) precisely what they are currently being investigated for by both the DoJ in the US and the EC in the EU?

[rhadin]

Originally Posted by J. Strnad

Maybe it's time to quit worrying about what they might do and look at what they do do and make the most of it. Yeah, maybe sometime in the future they'll try to make you eat broccoli, but that's when you take your stand and fight, not when things are going your way.

This approach reminds me of this quote:

"First they arrested the Communists -- but I was not a Communist, so I did nothing.
Then they came for the Social Democrats -- but I was not a Social Democrat, so I did nothing.
Then they arrested the trade unionists -- and I did nothing because I was not one.
And then they came for the Jews and then the Catholics, but I was neither a Jew nor a Catholic and I did nothing.
At last they came and arrested me -- and there was no one left to do anything about it."

Rev. Martin Niemoeller, Nazi Prison Survivor

Once Amazon has effective control over the ebook marketplace, authors will have no choice but to do as Amazon says and accede to whatever demands Amazon may make. At that point authors will have little power to fight back. If an author can't get Amazon to change the terms of its contracts now when there is competition, what makes an author think he/she will be able to effectively fight back when there is no competition?

[TimW]

It did take thirty whole pages for this thread to go there...

[Fbone]

If this "cooling off" period is true, it makes the DOJ investigation useless. They might as well just walk away from it.

[JSWolf]

Originally Posted by ProfCrash

Because it costs them so much to convert?

Or they could sell only using Amazons format, which is more widely read then EPub. Same effect without pissing off the largest e-book store in the world with the largest market share.

Nope, that won't fly because Mobipocket is dead outside of Amazon. Amazon won't allow other companies to add in AZW. So that's a no go.

ePub for Amazon is much more likely and Adobe would allow it to happen.

[JSWolf]

Originally Posted by HarryT

It would have been commercial suicide for them to have done that!

If the eBooks were not available at Amazon, People would buy other readers that handled ePub or install ePub reading apps for their tablets (for those that read using a tablet). And if that happens in enough force, Amazon will cave. Also, I think Kindle owners will be complaining in force for Amazon to do something even if that means going ePub.

[JSWolf]

Originally Posted by Andrew H.

I think you and I have different ideas of what a level playing field is, since you are basically suggesting that the Big 6 get together and render all of Amazon's devices obsolete overnight.

And you think that the DoJ would go along with it? Because it would be friendly to consumers?

I don't think that would be illegal as all Amazon has to do is port ADE to the Kindle. Sony did it on a PRS-500 and given that all Kindles are of better hardware then a 500, it can be done.

[Andrew H.]

Originally Posted by HarryT

Isn't this (the "Big 6" acting together is restraint of free trade) precisely what they are currently being investigated for by both the DoJ in the US and the EC in the EU?

That's my understanding. It would be interesting to know what kind of evidence (if any) they have (aside from the obvious).
[/quote]

Originally Posted by JSWolf

I don't think that would be illegal as all Amazon has to do is port ADE to the Kindle. Sony did it on a PRS-500 and given that all Kindles are of better hardware then a 500, it can be done.

The crime is committed when the companies get together and do something to restrain trade, which this would certainly be. It doesn't matter how complicated it is for Amazon to switch to ADE; companies aren't allowed to get together and force Amazon to make that switch.