Amazon’s Book Monopoly : A Threat to Freedom of Expression?

[pwalker8]

Originally Posted by darryl

I wonder if Amazon is as competent at lobbying as they seem to be at everything else they do. Also, I doubt the connection with the Washington Post will do any harm either.

Given the results they have gotten from Washington, I would guess that Amazon is quite good a lobbying and donating to the right politicians' campaign funds.

[DiapDealer]

Originally Posted by pwalker8

Given the results they have gotten from Washington, I would guess that Amazon is quite good a lobbying and donating to the right politicians' campaign funds.

If by "results" you mean lack of action against them; that can be just as easily explained by "nothing to see here." There's no need to grease palms in order to get politicians to look the other way if you're doing nothing wrong in the first place.

[fjtorres]

Originally Posted by DiapDealer

If by "results" you mean lack of action against them; that can be just as easily explained by "nothing to see here." There's no need to grease palms in order to get politicians to look the other way if you're doing nothing wrong in the first place.

That was Microsoft's position.
They ended up with a court ruling that said they did no harm to consumers or Netscape but they needed to be punished anyway.

Showing up with a broomstick to a gunfight only works in kung-fu movies.
Once business gets political the only viable strategy is to make sure you have the bigger battalions.

[jhowell]

Originally Posted by Rizla

Then of course Amazon, despite its dominant market position, shows zero interest in releasing an e-reader that is not 6". Really, Amazon is barely innovating in e-ink, if at all.

I think that the release history of Amazon's reading software reflects their priorities. In the past six months there has been only one firmware update for the Kindle Voyage. In that same time period the iOS and Android apps have been updated six times each. Part of this is due to the relative ease of releasing new app versions, but I think it still shows where the development focus is occurring.

It wouldn't surprise me if the current line-up of of Kindles are the last to be released by Amazon. The dedicated e-reader market is shrinking. I don't think that they could do much to the hardware to increase sales. It is all about price now.

[Sydney's Mom]

IMHO, the definition of a Monopoly is circular. A Monopoly is a market position that harms the free market. So a Monopoly is bad. You know it is a Monopoly if it is bad.

This is the most blatant example of the pot calling the kettle black I have ever seen. Although that is a common lawyer tactic, publishers who put a throttle on what books come to market, attacking Amazon, who lets any junk anyone wants to post use its marketplace, seems rather too beyond the pale. But that has never stopped them before.

[Conan46]

Originally Posted by Rizla

There are signs they are listening less. Consider the Kindle software and its viewing options. It's lagged behind Kobo for some years now. Many people have complained about few font choices. There are no bold font options. The much vaunted Bookerly was a disappointment and criticized for being too light. Amazon have done nothing to correct it.

Then of course Amazon, despite its dominant market position, shows zero interest in releasing an e-reader that is not 6". Really, Amazon is barely innovating in e-ink, if at all.

Signs of disconnect, perhaps.

Meanwhile Mr Bezos is playing with rockets. Like John Carmack and Id software and the forever reducing feature-set in his games. Who plays Id games now?

That could be. But we know they pay attention to sales, and they must have tons of data. Over a year ago Amazon noticed a big uptick in sales of tablets in the $50 price range, now they have their own $50 tablet. It seems a trend that Amazon comes out with a higher quality product, then with a second product in that category at a lower price and lower specs to increase sales. We saw that with a higher priced Fire TV, then lower priced Fire TV stick, and we will be seeing a lower priced Echo in the weeks ahead if reports are accurate. They probably are more interested in being "good enough" rather than the best in every case.

[Sydney's Mom]

Originally Posted by DiapDealer

If by "results" you mean lack of action against them; that can be just as easily explained by "nothing to see here." There's no need to grease palms in order to get politicians to look the other way if you're doing nothing wrong in the first place.

Exactly. Washington doesn't like to tilt at windmills. Wait, how many times did they try to repeal Obamacare?

[leebase]

Originally Posted by fjtorres

What BAEN did was raise their ebookstore prices by Amazon's cut and then divide the added revenue on their store between them and the authors. And they told everybody. So those of us who know how to buy at the BAEN store know to keep on doing it while all the Kindle owners who don't know about the BAEN store generate added sales offsetting the losses from the higher prices.

Far from ideal but the real world is far from ideal anyway.

Yes, the customers of Baen had their prices raised...because of Amazon.

[HarryT]

Originally Posted by leebase

Yes, the customers of Baen had their prices raised...because of Amazon.

No, they had them raised because Baen decided that they wanted to sell their books through Amazon. Nobody forced them to do so.

[fjtorres]

I wouldn't be so sure the market is shrinking.

Nobody can know that for sure without knowing the death rate and usage rate of existing devices. All we know if that sales of new devices is lower than in the peak adoption years but we don't know how many of the new devices are going to new users and how many are going to existing users replacing broken devices.

Back in the days when hardly anybody had ereaders it was a safe bet that the vast majority of sales were to new users. To be able to say that the market is shrinking one would need to know for a fact that all new sales were either replacements for dead devices or that more people were abandoning eink than are adopting them for the first time. And that's not something even Amazon can say for certain given that they are not the sole source of ebooks for their readers and given the changes in readers book buying behavior. (I think it's pretty clear that hoarding free books is one behavior in decline, for example.)

At most, one can say that a lot of ebook consumption has moved to multipurpose devices because ebook reading is no longer just the domain of hobbyists (well, in the US/UK, anyway) or even just avid readers who can justify the cost of a dedicated device, but has spread to casual readers who are taking advantage of apps to read the occasional ebook on devices acquired for other purposes. And since one key fact of the commercial book business is that casual readers matter a lot because while they individually buy few books, there are a whole lot more of them than avid readers and that means that their reading habits matter. But that dies not negate that the avid readers using dedicated reading devices are essential to a healthy ebook ecosystem: B&N made that very clear the last time they bragged about their active accounts.

The number of avid readers may be lower but their high consumption of ebooks means their influence is multiplied and so is the importance of their reading device of choice. So, again, absent any real evidence that avid readers are turning to tablets en masse we can't say the ereader market is shrinking just because more ebook reading is happening on tablets and phones.

I seriously doubt Amazon will never release a new generation of Kindles, if only for marketing reasons. There will most definitely be a new Paperwhite at somepoint,probably this year. There will probably be a new Voyage or equivalent at some point but it isn't a certainty. Maybe the market for premium readers isn't big enough to justify a new design. And besides, there is always Liquavista.

The likeliest explanation for why Amazon isn't adding new features is simply that new features won't sell more Kindles.

Kindles sell because of the ebookstore, not because of the number of features. That has never been Amazon's strategy. They sell because of outdoor readability, the long battery life, the low eyestrain (for those subject to it) and because of the form factor. All of which are generic to the screen tech. It is the bookstore that has always driven Kindle sales over other brands, not the hardware or the software.

Focusing on hardware or software is missing the forest for the trees.

Want to see Amazon's primary focus in ebooks? Look to the scandal of the week, the handwringing over flagging substandard ebooks. And look at all the ways they keep trying to attract and hold Indie authors: Kindle worlds, Kindle scout, Kindle Unlimited, matchbook, etc.

How many of those are being matched at Kobo? Apple? Google? Elsewhere?

It's the bookstore first.
Kindles second.
Apps third.
Goodreads fourth.
One might disagree with their priorities but it's working for them and ultimately that is why there is all the whining.
The have the top store and everything else flows from there.

[fjtorres]

Originally Posted by HarryT

No, they had them raised because Baen decided that they wanted to sell their books through Amazon. Nobody forced them to do so.

Nope. Pretty sure nobody threatened to kneecap them.
They wanted access to the Amazon ebookstore and that meant changing their business model. TINSTAAFL is something BAEN understands well, unlike so many in publishing.

[SteveEisenberg]

Originally Posted by Sydney's Mom

. . . publishers who put a throttle on what books come to market . . .

The best argument for publishers putting a throttle on what books come to market was divested by Random House earlier this month. See:

Penguin Random exits self-publishing

and

While Author Solutions will likely continue to run as a self-publishing business, it seems traditional publishing companies have largely decided to steer clear of Amazon in this area.

The reason Author Solutions throttles what books come to market is that they ask authors to put up their own money before titles are published.

Rather than putting a throttle on books coming to market, the type of publisher I value is buying book proposals, improving manuscripts, and bringing them to market, at the publisher's expense.

Here's the excellent, publisher-nurtured, edited, and brought to market, new release I am now reading:

http://www.amazon.com/City-Thorns-Wo...city+of+thorns

As for the OP situation, I hope they'll release a transcript of next Wednesday's event. Maybe that will change my opinion. But, right now, my feeling is that the publishers of the books I value have regained control of their retail product prices. Amazon is selling their products at those prices and without artificial delays. All good to me. Unless I am missing something, the publishers have, for now, won their battle with Amazon, preserving the type of free expression nurtured by publishers willing to take on some of the risk that a title, such as in my last link, won't sell enough to recoup expenses. Perhaps I am missing something. But for now, I'm backing off the Amazon-bashing, albeit for reasons different from other friends-of-Amazon on the thread.

[pwalker8]

Originally Posted by fjtorres

That was Microsoft's position.
They ended up with a court ruling that said they did no harm to consumers or Netscape but they needed to be punished anyway.

Showing up with a broomstick to a gunfight only works in kung-fu movies.
Once business gets political the only viable strategy is to make sure you have the bigger battalions.

Yep. Once you get to a certain size, the pols will be coming to you with the hands out anyway, might as well get ahead of the curve. It stinks, but that's how the world is. The downside is that once you start buying politicians, it's pretty easy to go from "just leave me alone" to "I have this little problem I want you to help me with".

[darryl]

@Steve. It's a wonderful world!

"If you want to ride a rainbow, come with me
And I will take you to the magic purple sea"


(From John Martyn's Fairy Tale Lullaby) http://www.johnmartyn.com/lyrics/fairy-tale-lullaby/

I'll make two simple observations. Author Solutions was not about selling books. Just ripping-off Authors. Given its business model as exposed in Court it amazes me that icons of publishing such as PRH would have anything to do with it, let alone own it and expand it. Good business judgement there?

Yes. With Apple's help and a blatant disregard for the law, the Big 5 have got control of retail prices of ebooks. And, of course, they have neither the expertise nor the data to properly set such prices. So, traditional publishing continues to lose sales to Indies and self-publishing, which it seems determined to pretend does not exist.

[fjtorres]

Originally Posted by darryl

I'll make two simple observations. Author Solutions was not about selling books. Just ripping-off Authors. Given its business model as exposed in Court it amazes me that icons of publishing such as PRH would have anything to do with it, let alone own it and expand it. Good business judgement there?

About the randy penguin "divesting" Author Solutions: it is mostly sleight of hand.
("Pay no attention to the man behind the curtain!")
https://davidgaughran.wordpress.com/...nity-business/

Four Penguin Random House-owned vanity presses will remain in operation – Partridge India, Partridge Singapore, Partridge Africa, and MeGustaEscribir – and will be run as Partner Imprints. You can read more about how Partner Imprints work here, but the short version is that Author Solutions will operate these four vanity presses on behalf of Penguin Random House, and PRH’s job will be to provide leads (aka newbie writers), lend its name and brand to the effort, and then sit back and collect its commissions.

This is precisely how Author Solutions operates Archway Publishing on behalf of Simon & Schuster, Westbow for HarperCollins, and Balboa Press for Hay House, among others. In short, Penguin Random House is still in the vanity business, it’s just flying under the radar – along with many more famous names in the industry.


Smart, Selling Smarter

These troublesome little details were overlooked by the press who were keen to trumpet Penguin Random House’s move. Indeed, it has been quite revealing watching the reaction unfold.

When Penguin purchased Author Solutions in 2012 for $116m, virtually all the press had the same angle: Penguin was making a smart move into the fast-growing world of self-publishing. No mention was made of the controversial business practices of Author Solutions, or that the giant vanity press resembled a viable self-publishing platform much in the way a glass of hydrochloric acid is a recommended way to cleanse after the holidays.

Fast forward to 2016, and suddenly Author Solutions has become “controversial” and even “toxic” – and selling the company is being hailed as an even smarter move. But what happened in-between 2012 and 2016? What did Author Solutions do to become toxic or controversial? Why was purchasing the company seen as smart in 2012, but getting rid of it was seen as even smarter in 2016?

Readers of this blog will be fully aware, but readers elsewhere will have no idea whatsoever because the press refused to cover the story. Indeed, in most publications, the only stories they ran on Author Solutions in the last four years were the purchase and the sale – no mention whatsoever of its awful business practices, the widespread protests from the author community, even the class actions.


An Accidental Inheritance

One line being pushed by publishing professionals is that Random House somehow accidentally inherited Author Solutions in the Penguin merger. I can picture CEO Markus Dohle pinching his nose as he made the head of Author Solutions part of his global executive team – obviously under some kind of duress.

More seriously, it’s patently ridiculous to make this claim. Penguin Random House happily continued the aggressive international expansion of Author Solutions commenced by Penguin – even to the point of opening a vanity press right in the offices of Random House Spain and pimping out its editors to sell 4,000 Euro evaluation reports.

Let’s also not forget what then-Penguin CEO John Makinson said when purchasing the company in 2012. “We spent time getting to know the people at Author Solutions and their sophisticated operation,” Makinson said. “They have skills that can help us at Penguin.”

His current job? Chairman of Penguin Random House.

Scorpions will always be scorpions.

More at the source.

Edit: ...like this rogues gallery, all working hand in hand with Author Solutions to fleece the unwary:

I try and maintain and up-to-date list, but tracking down the extent to which Author Solutions has infiltrated our industry would be a full time job. There are simply too many companies with their noses in the trough. Below is but a partial list of its publishing partners:

Simon & Schuster (Archway Publishing), Lulu (marketing services), Harlequin (DelleArte Press) – partnership terminated 2015, Hay House (Balboa US, Balboa Australia), Barnes & Noble (Nook Press Author Services), Crossbooks (LifeWay) – partnership terminated 2014, Penguin (Partridge India, Partridge Singapore, Partridge Africa, BookCountry – marketing services), HarperCollins/Thomas Nelson/Zondervan (Westbow Press), Random House Spain (MeGustaEscribir), Writer’s Digest (Abbott Press) – partnership terminated 2014.

In addition to these publishing partners, Author Solutions has also forged a variety of marketing partnerships. Again, this is very much a partial list:

The Guardian Weekly, Baker & Taylor, Miami Book Fair International, New York Times, Women of Faith Conferences, The Bookseller (relationship terminated in 2014), Kirkus, The Combined Book Exhibit, Word On The Street Festival Toronto, Publishers Weekly, International Christian Retail Show, Library Journal, MindBodySpirit Festivals, ForeWord, LA Times Festival of Books, Bowker (relationship terminated in 2013/4), New York Review of Books, Hay House “I Can Do It!” Conferences, Alfred Hitchcock Mystery Magazine, Reader’s Digest, Bay Area Book Festival, Clarion, AARP National Event & Expo, London Review of Books, Ingram, Ellery Queen Mystery Monthly, Tucson Festival of Books.

(Bold highlights mine.)
Not listed above but also a verrrry long time partner of Author Solutions: The Authors Guild.
Seriously.

https://davidgaughran.wordpress.com/...l-a-bad-dream/

All on the take for years and years.